In our continuing series of questions from the AXA Campus course, Julian Hall asks you to test your knowledge of contract certainty

This week's questions come from the AXA Campus course FSA Regulation - Contract Certainty.

This course is of interest to anyone involved in broking or underwriting insurance risks.

The objective of the course is to provide information on the key issues relating to contract certainty and the FSA's approach.

Towards the end of 2004, the FSA significantly raised the profile of the issue of contract

certainty by issuing a challenge to the insurance market. Since that time, the FSA has received much in the way of positive feedback from our industry and is pleased to see the progress that has been made in meeting its guidelines.

The challenge continues, however, and the FSA has made clear its ongoing concerns relating to the risks posed to all parties involved in placing insurance cover by delays in finalising contract wordings.

The FSA sees the following risks:

  • Insurers do not have an accurate view of the risks they have underwritten and therefore may not hold appropriate levels of capital
  • Brokers face reconciliation issues and run the risk of claims for errors and omissions

  • Policyholders are not certain of the cover they have bought and may encounter difficulties in the event of a claim. This also affects their financial stability.
  • AXA Campus is an ideal learning tool as it provides over 350 courses and incorporates tailored versions of CII ed LEARN and ed ASSESS (AXA ed). This relationship provides a natural fit between the soft and technical learning material of AXA Campus and the qualification and compliance aspects of AXA ed.

    The questions for this course are supplied to AXA Insurance by Searchlight Solutions.

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