CISI ICWIM Exam With Confidence Using Practice Dumps

Key Person Protection:

This insurance protects a business against financial loss if a critical employee (e.g., founder, CEO) becomes incapacitated or dies.

It is designed to mitigate reliance on essential individuals whose absence would disrupt operations.

Elimination of Other Options:

B: Size of the business is not the determining factor.

C: Significant customers are protected under other insurance (e.g., credit insurance).

D: Seasonal profits do not relate to key person risk.

References:

ICWIM Module 5: Focus on business risk management and insurance needs.

Personal Accident Policies:

These policies often include a waiting period before payouts, allowing insurers to verify claims and ensure eligibility.

The waiting period varies depending on the policy terms.

Elimination of Other Options:

A: A doctor's visit is often necessary but not sufficient for payout.

B: Payments are not instantaneous.

D: Documentation is required, but it is part of the claim process, not the trigger for payout.

References:

ICWIM Module 5: Details on insurance policy structures and claims processes.

Personal Accident Policies:

These policies often include a waiting period before payouts, allowing insurers to verify claims and ensure eligibility.

The waiting period varies depending on the policy terms.

Elimination of Other Options:

A: A doctor's visit is often necessary but not sufficient for payout.

B: Payments are not instantaneous.

D: Documentation is required, but it is part of the claim process, not the trigger for payout.

References:

ICWIM Module 5: Details on insurance policy structures and claims processes.

Definition of Recession:

A recession is defined as two consecutive quarters of negative GDP growth, indicating a sustained economic downturn.

It reflects reduced consumer spending, higher unemployment, and lower production.

Elimination of Other Options:

B (Slump): A slump is a more general term and not a specific phase.

C (Depression): Refers to prolonged and severe economic downturns.

D (Inflationary): Opposite of the scenario described.

References:

ICWIM Module 1: Explanation of economic cycles and recession indicators.