R05 Underwriting and disclosure: free practice questions

1. Question 1 of 5

   A short-term policy uses a typical moratorium. Jenna was treated for back pain three years before cover started and has a check-up for it 18 months into the policy. When will back pain claims first be covered?

   Option A: Two years after the most recent check-up, provided no further treatment followsOption B: Immediately, as the treatment was more than two years before cover startedOption C: After two years from the policy start dateOption D: Never, as pre-existing conditions are permanently excluded

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   The answer is A: Two years after the most recent check-up, provided no further treatment follows

   A typical moratorium excludes conditions treated in the previous five years until the person goes two years without treatment or check-ups. The check-up at 18 months restarts the two-year clock.

   Why the other options are wrong

   B

   Treatment in the five years before cover counts, and the check-up restarts the clock.

   C

   The two years run from the last treatment or check-up, not from the start date.

   D

   Moratorium exclusions aren't permanent; they lift after two clear years.

2. Question 2 of 5

   What does a GP report involve?

   Option A: A written report from the applicant's own doctor, without an examinationOption B: A telephone interview with an underwriterOption C: A full medical examination by a doctor appointed by the insurerOption D: Blood and urine tests carried out by a nurse at the applicant's home

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   The answer is A: A written report from the applicant's own doctor, without an examination

   A GP report is a written report from the applicant's own GP based on their records. It does not involve a medical examination or interview.

   Why the other options are wrong

   B

   A telephone interview is tele-underwriting.

   C

   An examination by an insurer-appointed doctor is a medical examination, not a GP report.

   D

   Blood and urine tests are separate medical tests.

3. Question 3 of 5

   What distinguishes 'big T' tele-underwriting from 'little t' tele-underwriting?

   Option A: Little t is carried out by doctors, big T by trained administratorsOption B: Big T is used only for sums assured above £1 million, little t below thatOption C: Big T replaces all medical evidence with saliva testsOption D: Big T asks most questions by phone; little t only asks follow-up questions

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   The answer is D: Big T asks most questions by phone; little t only asks follow-up questions

   With big T tele-underwriting, few questions appear on the form and most are asked over the phone. With little t, most questions stay on the form and only supplementary ones are asked by phone.

   Why the other options are wrong

   A

   Neither is defined by who asks the questions in this way.

   B

   The distinction isn't about sum assured thresholds.

   C

   Big T doesn't replace medical evidence with saliva tests.

4. Question 4 of 5

   Within what period should an organisation normally respond to a subject access request under data protection legislation?

   Option A: One monthOption B: Three monthsOption C: Seven daysOption D: 14 days

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   The answer is A: One month

   A response is normally due within one month. This can be extended by a further two months for complex requests.

   Why the other options are wrong

   B

   Three months is only possible with an extension for complex requests.

   C

   Seven days is shorter than the rules require.

   D

   14 days isn't the standard; it's one month.

5. Question 5 of 5

   Under the Consumer Insurance (Disclosure and Representations) Act 2012, a claimant is found to have acted honestly and reasonably but still failed to disclose a relevant fact. What remedy applies?

   Option A: The claim is paid in fullOption B: The policy is voided from inception with premiums keptOption C: The policy is voided but premiums are refundedOption D: A proportionate reduction is made

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   The answer is A: The claim is paid in full

   Where a consumer has acted honestly and reasonably, the misrepresentation is 'reasonable' and the claim must be paid in full.

   Why the other options are wrong

   B

   Voiding and keeping premiums is for deliberate or reckless misrepresentation.

   C

   Voiding with a refund applies where the insurer wouldn't have accepted a careless applicant.

   D

   Proportionate reductions are for careless misrepresentation, not honest and reasonable ones.

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