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Examination element of M05 Insurance law

Last Update 6 days ago
Total Questions : 50

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Question # 1

For this question more than 1 option is correct. You must select ail the correct options to gain the mark.

In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?

Options:

A.  

When fraud or arson by the insured is suspected.

B.  

Where the building was destroyed by an explosion.

C.  

Where there is underinsurance.

D.  

Upon the request of any person(s) interested in the buildings.

Discussion 0
Question # 2

For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?

Options:

A.  

A deliberate attempt to obtain the proceeds of two policies.

B.  

A merger between two major insurance companies.

C.  

An overlap in cover between two different types of insurance policy.

D.  

The inadvertent non-cancellation of a policy when a new policy is taken out.

Discussion 0
Question # 3

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?

Options:

A.  

Lien.

B.  

Coinsurance.

C.  

Power of Attorney.

D.  

Trust.

Discussion 0
Question # 4

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 an express term in reaching or recording an agreement?

Options:

A.  

It will usually override any implied term which conflicts with it.

B.  

It must be evidenced in documentary form.

C.  

It may be oral or in writing.

D.  

It may be implied by conduct.

Discussion 0
Question # 5

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?

Options:

A.  

Cover for both parties would be invalidated as the cover is likely to be a composite 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 would be maintained in full for the innocent party as the cover is likely to be a joint policy

Discussion 0
Question # 6

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?

Options:

A.  

The delay in seeking medical treatment.

B.  

The unhygienic washing of the dog bite.

C.  

The original physical injury of the dog bite.

D.  

The delay in obtaining the correct medical treatment.

Discussion 0
Question # 7

For this question more than 1 option is correct. You must select all the correct options to gain the mark.

The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must

Options:

A.  

settle a claim promptly once settlement has been agreed.

B.  

handle a claims notification within 14 days.

C.  

provide reasonable guidance to an insured to help him make a claim.

D.  

not unreasonably reject an insured's claim.

Discussion 0
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