M81 Exam Questions and Answers Solved Correctly Latest Update 2025-2026
What is the primary goal when establishing client needs? - Answers To determine what the client wants
and needs.
What is the responsibility of a firm regarding the services it provides to clients? - Answers To take
reasonable care to ensure the suitability of the service.
How do clients typically express their needs? - Answers Clients often state the benefits they want
without knowing the features of those benefits.
What is the difference between benefits and features in client services? - Answers Benefits are what a
client wants, while features are what they need (e.g., type of insurance).
What should a broker do to understand a client's underlying needs? - Answers Ask questions and
continue to do so until the needs are established.
What must be provided to a client regarding their demands and needs? - Answers A copy of their
demands and needs, which will serve as the basis for the policy.
How should insurance be explained to clients? - Answers In a way that they understand, ensuring clarity
on the precise terms.
What should be included in a suitability statement? - Answers The customer's demands and needs, how
the recommendation addresses these demands, and the reasons for the recommendations.
What factors must a broker consider when assessing a client's policy? - Answers The level of cover, cost
of the contract, and any relevant exclusions, excess, or limits.
What are the four key elements that may be presented in different documents for written agreements
with clients? - Answers Regulatory information, cooling off period, complaints procedures, and
availability of compensation.
What is the purpose of the TOBA (Terms of Business Agreement)? - Answers To clarify the authority to
act, including start and end dates and new terms.
What does BIBA recommend including in the authority to act wording? - Answers Broker information,
including the name of the firm.
What are the possible durations of a contract? - Answers Open-ended, renewable, or fixed period.
What is the client's duty regarding disclosure? - Answers Clients must disclose relevant information, and
there are consequences for not doing so.
What is the significance of consumer proposal forms? - Answers They are used to gather necessary
information from clients.
, What should be included regarding insurer security? - Answers An outline of the firm's policy on the use
of insurers.
What does the broker not guarantee regarding insurers? - Answers The security of any insurer.
What is CASS in relation to client money? - Answers Client money must be held in a separate bank
account as per CASS regulations.
What must brokers disclose regarding their income? - Answers Brokers must disclose how their income
will be derived from lineslips and facilities.
What are the obligations of clients in relation to brokers? - Answers Clients must allow access to sites
and information, access to senior management as required, and deliver information.
What is included in the Service Level Agreement (SLA) provided by brokers? - Answers Details of the
services the broking firm is providing.
What are key performance indicators (KPIs) in the context of brokerage services? - Answers KPIs can
include premium savings, delivery of enhanced cover, achievement of required capacity, and supporting
fee negotiations.
What must brokers disclose if the final amount is not finalized? - Answers Brokers must explain how the
amount is being calculated.
What are the responsibilities of a broker regarding claims? - Answers Brokers must describe how claims
are dealt with and ensure reasonable care and skill.
What is the significance of the Data Protection Act in brokerage? - Answers It governs how brokers
handle client data and confidentiality.
What should brokers do to prevent underinsurance? - Answers Brokers must understand clients' needs
and demands and make a fair presentation of the risk.
What is the limitation of liability clause? - Answers A clause that limits the broker's liability in certain
situations.
What are the payment terms for broker remuneration? - Answers Brokers can be paid by insurers as a
percentage of the premium or by clients through a fee.
What is the role of risk management in brokerage services? - Answers To provide strategies that prevent
the minimization of loss.
What must brokers disclose regarding their actual earnings? - Answers Brokers are obliged to disclose
their actual earnings from transactions.
What are the general services provided by brokers? - Answers Review of clients' business and risk
exposures, assessments of risk appetite, and provision of appropriate programs.
What is the primary goal when establishing client needs? - Answers To determine what the client wants
and needs.
What is the responsibility of a firm regarding the services it provides to clients? - Answers To take
reasonable care to ensure the suitability of the service.
How do clients typically express their needs? - Answers Clients often state the benefits they want
without knowing the features of those benefits.
What is the difference between benefits and features in client services? - Answers Benefits are what a
client wants, while features are what they need (e.g., type of insurance).
What should a broker do to understand a client's underlying needs? - Answers Ask questions and
continue to do so until the needs are established.
What must be provided to a client regarding their demands and needs? - Answers A copy of their
demands and needs, which will serve as the basis for the policy.
How should insurance be explained to clients? - Answers In a way that they understand, ensuring clarity
on the precise terms.
What should be included in a suitability statement? - Answers The customer's demands and needs, how
the recommendation addresses these demands, and the reasons for the recommendations.
What factors must a broker consider when assessing a client's policy? - Answers The level of cover, cost
of the contract, and any relevant exclusions, excess, or limits.
What are the four key elements that may be presented in different documents for written agreements
with clients? - Answers Regulatory information, cooling off period, complaints procedures, and
availability of compensation.
What is the purpose of the TOBA (Terms of Business Agreement)? - Answers To clarify the authority to
act, including start and end dates and new terms.
What does BIBA recommend including in the authority to act wording? - Answers Broker information,
including the name of the firm.
What are the possible durations of a contract? - Answers Open-ended, renewable, or fixed period.
What is the client's duty regarding disclosure? - Answers Clients must disclose relevant information, and
there are consequences for not doing so.
What is the significance of consumer proposal forms? - Answers They are used to gather necessary
information from clients.
, What should be included regarding insurer security? - Answers An outline of the firm's policy on the use
of insurers.
What does the broker not guarantee regarding insurers? - Answers The security of any insurer.
What is CASS in relation to client money? - Answers Client money must be held in a separate bank
account as per CASS regulations.
What must brokers disclose regarding their income? - Answers Brokers must disclose how their income
will be derived from lineslips and facilities.
What are the obligations of clients in relation to brokers? - Answers Clients must allow access to sites
and information, access to senior management as required, and deliver information.
What is included in the Service Level Agreement (SLA) provided by brokers? - Answers Details of the
services the broking firm is providing.
What are key performance indicators (KPIs) in the context of brokerage services? - Answers KPIs can
include premium savings, delivery of enhanced cover, achievement of required capacity, and supporting
fee negotiations.
What must brokers disclose if the final amount is not finalized? - Answers Brokers must explain how the
amount is being calculated.
What are the responsibilities of a broker regarding claims? - Answers Brokers must describe how claims
are dealt with and ensure reasonable care and skill.
What is the significance of the Data Protection Act in brokerage? - Answers It governs how brokers
handle client data and confidentiality.
What should brokers do to prevent underinsurance? - Answers Brokers must understand clients' needs
and demands and make a fair presentation of the risk.
What is the limitation of liability clause? - Answers A clause that limits the broker's liability in certain
situations.
What are the payment terms for broker remuneration? - Answers Brokers can be paid by insurers as a
percentage of the premium or by clients through a fee.
What is the role of risk management in brokerage services? - Answers To provide strategies that prevent
the minimization of loss.
What must brokers disclose regarding their actual earnings? - Answers Brokers are obliged to disclose
their actual earnings from transactions.
What are the general services provided by brokers? - Answers Review of clients' business and risk
exposures, assessments of risk appetite, and provision of appropriate programs.
