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NEW QUESTION # 14
Insurance agencies are usually created by way of
- A. implied agreement.
- B. express agreement.
- C. deed of agreement.
- D. unilateral agreement.
Answer: B
NEW QUESTION # 15
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. a person holding a senior position at Liz's bank.
- B. a person holding a dominant position over Liz.
- C. Liz's independent financial adviser.
- D. Liz's husband.
Answer: B
NEW QUESTION # 16
A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
- A. If the tumble dryer is covered by extended warranty insurance.
- B. If there is a breach of a warranty requiring the burglar alarm to be set.
- C. If there is a subrogation action against the manufacturer of the tumble dryer.
- D. If the policyholder exaggerates the value of the claim.
Answer: D
NEW QUESTION # 17
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- B. On submission of a claim.
- C. From the date of a breach of warranty.
- D. Where there is a variation in the insured risk.
Answer: D
NEW QUESTION # 18
What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?
- A. 25% for personal injury cases and 35% for employment tribunal cases.
- B. 50% for both cases.
- C. 35% for both cases.
- D. 35% for personal injury cases and 25% for employment tribunal cases.
Answer: A
NEW QUESTION # 19
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 the authority to act on behalf of another party.
- C. A person has ratified another party's action.
- D. A person has transferred his obligations under a contract to another party.
Answer: B
NEW QUESTION # 20
As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
- A. the misrepresentation was innocent.
- B. the premium was paid by monthly installments.
- C. the misrepresentation was fraudulent.
- D. no claim had been submitted or paid.
Answer: A
NEW QUESTION # 21
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. provides insurance where the scope of cover is narrow compared to the premium charged.
- B. has been individually negotiated and is to the detriment of either one of the parties.
- 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 # 22
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. Apply any terms it would have applied if the misrepresentation had not taken place.
- B. Reject the claim, but maintain the policy.
- C. Avoid the contract, refuse all claims and keep the premium.
- D. Reduce the claim amount in proportion to the premium it would have charged.
Answer: A,D
NEW QUESTION # 23
At what stage is insurable interest required for a marine cargo insurance policy?
- A. At inception of the policy only.
- B. At both inception of the policy and at the time of the loss.
- C. Throughout the duration of the contract.
- D. At the time of the loss only.
Answer: D
NEW QUESTION # 24
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. 3 years.
- B. 15 years.
- C. 9 years.
- D. 6 years.
Answer: A
NEW QUESTION # 25
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. The State
- C. The insured only.
- D. It is shared between the insurer and the insured.
Answer: C
NEW QUESTION # 26
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. forms the contract with the insurer.
- B. assigns the contract to a third party.
- C. signs and submits the completed proposal form to the insurer.
- D. dies and his estate submits a claim to the insurer.
Answer: A
NEW QUESTION # 27
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. Cover is suspended whilst the insurer pursues an action for subrogation.
- B. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- 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
Which divisional court of the High Court includes a Commercial Court?
- A. Chancery Division.
- B. Queen's Bench Division.
- C. Family Division.
- D. Partnership Division.
Answer: A
NEW QUESTION # 29
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