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IIQEPrepStudyingPaper 1
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MPF intermediaries
MPFMPF Intermediaries ExaminationA broker fails to take reasonable care in arranging a client's cover, and the client suffers an uninsured loss. The client's most likely remedy is to:
Answer: sue the broker for professional negligence. If the broker, as a deemed expert, fails to take reasonable care, he may be guilty of professional negligence, and the client may sue him; brokers must carry PII.Why not the others:• complain to the ICB about the broker: the ICB has no jurisdiction over intermediaries.• claim compensation from the Motor Insurers' Bureau: the MIB helps road accident victims.• claim against the insurer under section 68 of the IO: section 68 covers insurers' appointed agents, not brokers.Watch out: Using section 68 against an insurer for a broker's error.Rule: Brokers carry onerous duties of care and must hold professional indemnity insurance.Source: IA P1 Study Notes 2024 Ed. §7.1.1(c)-(d), p.7/1-7/2
Using section 68 against an insurer for a broker's error.
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