Mena has bought a new car and needs motor vehicle insurance. She knows that she has to contact an insurance broker or an insurance company to arrange insurance.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [4] (a) 1 mark for each method and 1 mark for each description × 2
2. [4] (a) Oral/verbal (1) two-way communication/face-to-face/directly speaking/telephoning or talking to someone/asking questions (1)
3. [4] (a) Written (1) such as letter/email (1)
4. [4] (a) Telephone/mobile phone/smartphone (1) two-way communication/calling or speaking to someone/verbal/asking questions (1)
5. [4] (a) Electronic/internet/email (1) such as online/website/social media (e.g. Facebook)/written/email attachments (1)
6. [3] (b) 1 mark for insurance document and up to 2 marks for explanation
7. [3] (b) Proposal form (1) application for insurance (1) shows questions of what is to be insured/e.g. value of car (1) to be completed honestly/in utmost good faith (1) showing all material facts (1) used to calculate premium (1)
8. [3] (b) Cover note (1) provides temporary insurance (1) as soon as first premium is paid (1)
9. [3] (b) Policy (1) evidence/proof of being insured (1) contract of insurance (1) shows details/terms of cover (1)
10. [8] (c) Level Mark Description
11. [7-8] (c) Candidate makes a full evaluation of whether (or not) to use an insurance broker or insurance company to obtain motor vehicle insurance.
12. [5-6] (c) Candidate offers a satisfactory analysis of the advantages and/or disadvantages of using an insurance broker and/or insurance company.
13. [1-4] (c) Candidate applies relevant knowledge and understanding to insurance broker and/or insurance company for obtaining motor vehicle insurance.
14. [0] (c) No creditable response.
15. [8] (c) An insurance broker will offer independent advice on which company to use. If the proposer has difficulty in obtaining insurance cover, an insurance broker would be able to recommend an insurance company willing to offer insurance. The insurance broker will organise the proposal form and other documentation and arrange for the premium to be paid. The insurance broker would also assist when making a claim.
16. [8] (c) Contacting insurance companies direct may take time and effort, however the proposer will be able to compare what the companies have to offer. Insurance companies offer a range of policies so the proposer might have difficulty deciding on which insurance company to use. You might save money as you will not be subject to the broker's commission and some brokers take commission from some insurance companies, so they will try harder to sell you that policy instead of others. In addition, you may have particular circumstances that the insurance company have the necessary expertise to deal with.
17. [8] (c) Example of evaluation: For these reasons I recommend using an insurance broker as I do not want to spend time and money telephoning different insurance companies who might just be interested in promoting their own insurance policies rather than finding me the best one.