CII Certificate In Insurance - Motor Insurance Products (IF5) Practice Test

What most clearly distinguishes a Lloyd's broker when placing business in the Lloyd's market?

It is authorised to access Lloyd's underwriters and place risks in that market It can only transact personal lines insurance It must accept underwriting risk on its own balance sheet It is exempt from FCA regulation

Correct Answer:

It is authorised to access Lloyd's underwriters and place risks in that market

Explanation:

A Lloyd's broker is distinguished by its ability to access and transact business in the Lloyd's market in accordance with Lloyd's requirements. It remains an intermediary rather than the risk carrier and is not exempt from applicable regulation.

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