Free E05 Exam Braindumps certification guide Q&A
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NEW QUESTION 13
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 express term.
- B. a basis of the contract clause.
- C. a continuing warranty.
- D. an exception clause.
Answer: A,B
NEW QUESTION 14
What are the main objectives of the principle of insurable interest?
- A. To reduce moral hazard and to discourage profiteering.
- B. To reduce physical hazard and to discourage wagering.
- C. To reduce moral hazard and to discourage wagering.
- D. To reduce physical hazard and to discourage profiteering.
Answer: C
NEW QUESTION 15
A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under
- A. a condition subsequent to liability.
- B. tort.
- C. statute.
- D. a condition precedent to liability.
Answer: C
NEW QUESTION 16
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. does not restrict liability for death or personal injury.
- C. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- D. provides insurance where the scope of cover is narrow compared to the premium charged.
Answer: C
NEW QUESTION 17
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?
- A. It is an organisation with a separate legal existence to its membership.
- B. It is not treated as a separate legal entity.
- C. It is answerable to its shareholders or members.
- D. It is a legal person representing one official position.
Answer: A,C
NEW QUESTION 18
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
- A. £3,000
- B. £6,000
- C. £5,000
- D. £15,000
Answer: C
NEW QUESTION 19
Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?
- A. The insurer only.
- B. It is shared between the insurer and the insured.
- C. The State
- D. The insured only.
Answer: D
NEW QUESTION 20
Which divisional court of the High Court includes a Commercial Court?
- A. Family Division.
- B. Chancery Division.
- C. Queen's Bench Division.
- D. Partnership Division.
Answer: B
NEW QUESTION 21
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. International treaties.
- B. Official law reports.
- C. Legislation.
- D. Case law.
Answer: C,D
NEW QUESTION 22
Insurance agencies are usually created by way of
- A. implied agreement.
- B. deed of agreement.
- C. express agreement.
- D. unilateral agreement.
Answer: C
NEW QUESTION 23
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 delay in obtaining the correct medical treatment.
- C. The unhygienic washing of the dog bite.
- D. The original physical injury of the dog bite.
Answer: D
NEW QUESTION 24
How can an agency relationship be best described?
- A. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
- B. A person has ratified another party's action.
- C. A person has the authority to act on behalf of another party.
- D. A person has transferred his obligations under a contract to another party.
Answer: C
NEW QUESTION 25
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. The insurer at all times.
- B. No one as Tim is not a party to the insurance contract.
- C. Both the insurer and Paul at different times.
- D. Paul as it is a consumer contract.
Answer: A
NEW QUESTION 26
Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill's claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill's position under his insurance policy?
- A. Bill must return the claim settlement in exchange for the painting.
- B. Bill may exercise an option to buy the painting back.
- C. Bill must buy the painting back.
- D. Bill may keep the claim settlement and also keep the painting.
Answer: B
NEW QUESTION 27
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. Cover is suspended whilst the insurer pursues an action for subrogation.
- C. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- D. The doctrine of subrogation is excluded from the policy.
Answer: C
NEW QUESTION 28
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. 9 years.
- C. 3 years.
- D. 6 years.
Answer: C
NEW QUESTION 29
The principle of subrogation prevents a policyholder from profiting from
- A. assigning abandonment rights to the insurer.
- B. retaining salvaged property.
- C. submitting a full claim recovery under more than one insurance policy.
- D. claiming under both his insurance policy and against any negligent third party.
Answer: D
NEW QUESTION 30
A claimant may possibly recover money transferred under an illegal contract when
- A. the illegality makes the contract voidable rather than void.
- B. the contract is against public policy but not substantive law.
- C. both parties to the contract are equal in wrongdoing.
- D. the legal portion of the contract can be severed from the illega portion.
Answer: C
NEW QUESTION 31
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Avoid the contract, refuse all claims and keep the premium.
- B. Reduce the claim amount in proportion to the premium it would have charged.
- C. Apply any terms it would have applied if the misrepresentation had not taken place.
- D. Reject the claim, but maintain the policy.
Answer: B,C
NEW QUESTION 32
For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?
- A. Bankruptcy of the agent.
- B. Bankruptcy of the principal.
- C. Disclosure of the name of the principal.
- D. Death of the agent.
Answer: B,D
NEW QUESTION 33
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