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NEW QUESTION 30
A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?
- A. A condition precedent to liability.
- B. A collateral condition.
- C. A condition precedent to the contract.
- D. A suspensive condition.
Answer: A
NEW QUESTION 31
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- B. The doctrine of subrogation is excluded from the policy.
- C. Cover is suspended whilst the insurer pursues an action for subrogation.
- D. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
Answer: D
NEW QUESTION 32
The branch of law particularly relevant when handling negligence claims is
- A. administrative.
- B. civil law.
- C. public law.
- D. constitutional law.
Answer: B
NEW QUESTION 33
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. has been individually negotiated and is to the detriment of either one of the parties.
- B. provides insurance where the scope of cover is narrow compared to the premium charged.
- C. does not restrict liability for death or personal injury.
- D. causes a significant imbalance in the parties' rights to the detriment of the consumer.
Answer: D
NEW QUESTION 34
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
- A. Coinsurance.
- B. Lien.
- C. Power of Attorney.
- D. Trust.
Answer: D
NEW QUESTION 35
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. dies and his estate submits a claim to the insurer.
- B. assigns the contract to a third party.
- C. signs and submits the completed proposal form to the insurer.
- D. forms the contract with the insurer.
Answer: D
NEW QUESTION 36
For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as
- A. an exception clause.
- B. an express term.
- C. a continuing warranty.
- D. a basis of the contract clause.
Answer: B,D
NEW QUESTION 37
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To encourage good risk management by the insured throughout the policy period.
- B. To enable an insurer to charge an additional premium if the warranty is continually breached.
- C. To ensure that underinsurance is avoided at all times.
- D. To maintain the annual aggregate limit of liability throughout the policy period.
Answer: A
NEW QUESTION 38
A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?
- A. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
- B. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
- C. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
- D. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
Answer: C
NEW QUESTION 39
The principle of subrogation prevents a policyholder from profiting from
- A. assigning abandonment rights to the insurer.
- B. claiming under both his insurance policy and against any negligent third party.
- C. submitting a full claim recovery under more than one insurance policy.
- D. retaining salvaged property.
Answer: B
NEW QUESTION 40
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. Both the insurer and Paul at different times.
- B. Paul as it is a consumer contract.
- C. No one as Tim is not a party to the insurance contract.
- D. The insurer at all times.
Answer: D
NEW QUESTION 41
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. reasonable person.
- B. prudent underwriter.
- C. honest proposer.
- D. diligent broker.
Answer: B
NEW QUESTION 42
The proximate cause of a loss is best described as the
- A. most remote cause of the loss.
- B. final peril to cause the loss.
- C. first peril to cause the loss.
- D. most dominant cause of the loss.
Answer: D
NEW QUESTION 43
Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
- A. £5,000,000
- B. £7,500,000
- C. £9,000,000
- D. £10,000,000
Answer: C
NEW QUESTION 44
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 15 years.
- B. 3 years.
- C. 6 years.
- D. 9 years.
Answer: B
NEW QUESTION 45
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. Legislation.
- B. International treaties.
- C. Case law.
- D. Official law reports.
Answer: A,C
NEW QUESTION 46
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The delay in seeking medical treatment.
- B. The original physical injury of the dog bite.
- C. The delay in obtaining the correct medical treatment.
- D. The unhygienic washing of the dog bite.
Answer: B
NEW QUESTION 47
In terms of private motor insurance, a renewal offer can be accepted
- A. by any third party.
- B. only by the proposer personally.
- C. only by written communication.
- D. by the proposer acting in reliance of the offer.
Answer: D
NEW QUESTION 48
A breach of warranty under the general law of contract legally entitles an injured party to
- A. claim damages.
- B. avoid the contract ab initio.
- C. obtain specific performance.
- D. avoid the contract from the date of the breach.
Answer: A
NEW QUESTION 49
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