CII IF9 flashcards
CII IF9 · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- General prohibition
- FSMA 2000 rule that no person may carry on a regulated activity by way of business in the UK unless authorised or exempt; breach is a criminal offence.
- Threshold conditions
- Minimum standards a firm must meet to be authorised and to remain authorised, covering legal status, location, effective supervision, resources and suitability.
- Consumer Duty
- FCA rule requiring firms to act in good faith, avoid foreseeable harm and enable retail customers to pursue their financial objectives, delivering good outcomes.
- Utmost good faith
- Insurance principle requiring the proposer to disclose all material circumstances and avoid misrepresentation; materiality is tested against what a prudent insurer would consider relevant.
- Insurable interest
- A legal or financial relationship with the subject matter such that the insured benefits from its preservation or suffers loss from its damage; required for a valid indemnity policy.
- Subrogation
- After paying a claim, the insurer acquires the insured's rights of recovery against a third party responsible for the loss, and the insured must not prejudice them.
- Contribution
- Right of an insurer that has paid to recover a proportionate share from other insurers covering the same loss at the same level, avoiding double recovery.
- Proximate cause
- The dominant, effective cause of a loss; it determines whether the policy responds when several causes combine, one of which may be excluded.
- Offer and acceptance
- Two of the elements needed to form a contract; acceptance must be unqualified and communicated, and a counter-offer destroys the original offer.
- Anticipatory breach
- A clear repudiation of contractual obligations before performance is due, entitling the innocent party to accept the breach, terminate and claim damages.
- Remoteness of damage
- Limiting principle under which damages are recoverable only for losses of a type reasonably foreseeable at the time the contract was made.
- Contra proferentem
- Rule of construction under which ambiguous terms, especially exemption clauses, are interpreted against the party who drafted and relies on them.
- Ostensible authority
- Authority arising where the principal represents that the agent may act, the third party relies on that representation, and the principal is bound.
- Undisclosed principal
- Situation where an agent contracts without revealing the principal; the principal may intervene subject to election rules, and the agent may be personally liable.
- Agent's duty to account
- Fiduciary obligation to keep the principal's money separate, keep records and pay over all sums received on the principal's behalf, including secret profits.
- Stare decisis
- Doctrine of binding precedent: decisions of higher courts bind lower courts in the same hierarchy, subject to distinguishing on the facts.
- Balance of probabilities
- Standard of proof in civil proceedings: the claimant must show the alleged facts are more likely than not, as applied in insurance and negligence disputes.
- Rectification
- Equitable remedy correcting a written document, such as a policy, that fails to record the terms actually agreed by the parties.
- Misrepresentation remedies
- Under the Insurance Act 2015, proportionate remedies scaled to culpability, ranging from avoiding the policy to paying a reduced claim for deliberate or reckless breaches.
- Regulated activity
- Activity specified in the Regulated Activities Order, such as effecting or carrying out insurance contracts, advising on investments or arranging deals, requiring authorisation.
- SM&CR
- Senior Managers and Certification Regime: requires approval of senior managers, certification of key staff and compliance with conduct rules.
- Skilled person report
- Independent report commissioned by a regulator under statutory powers, used in supervision or enforcement to assess a firm's systems, controls or conduct.
- Principle 11
- FCA Principle requiring a firm to deal with its regulators in an open and cooperative way and disclose appropriately anything the regulator would want to know.
- ICOBS
- FCA Insurance: Conduct of Business sourcebook, setting rules on disclosure, advice, claims handling and fair treatment for insurance customers.
- Vulnerable customer
- A customer whose circumstances, such as health, life events, low resilience or capability, increase the risk of harm and require tailored treatment.
- Lawful basis
- Condition under UK GDPR permitting processing, such as consent, contract, legal obligation, vital interests, public task or legitimate interests.
- Subject access request
- Request by an individual to see personal data held about them and related information; normally answered within one month under UK GDPR.
- Customer due diligence
- Anti-money laundering process of identifying the customer and beneficial owner, verifying identity and assessing risk before or during the relationship.
- Suspicious activity report
- Disclosure to the National Crime Agency by the nominated officer where a firm knows or suspects money laundering or terrorist financing.
- Eight-week rule
- FCA complaints rule requiring a firm to resolve a complaint and issue a final response within eight weeks, after which the customer may go to the Ombudsman.
- Fair and reasonable test
- Standard the Financial Ombudsman applies, considering law, regulator rules, guidance and good industry practice rather than only strict legal rights.
- FOS time limit
- A complainant may refer a complaint to the Financial Ombudsman within six months of receiving the firm's final response, subject to eligibility rules.