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NEW QUESTION 10
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 obtaining the correct medical treatment.
- B. The original physical injury of the dog bite.
- C. The unhygienic washing of the dog bite.
- D. The delay in seeking medical treatment.
Answer: B
NEW QUESTION 11
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 12
For this question more than 1 option is correct. You must select all the correct options to gain the mark. Which special defences are available to the fort of libel?
- A. Necessity.
- B. Privilege.
- C. Prescription.
- D. Statutory authority.
- E. Honest opinion.
Answer: B,E
NEW QUESTION 13
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?
- A. Where there is underinsurance.
- B. Where the building was destroyed by an explosion.
- C. Upon the request of any person(s) interested in the buildings.
- D. When fraud or arson by the insured is suspected.
Answer: C,D
NEW QUESTION 14
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. honest proposer.
- B. diligent broker.
- C. reasonable person.
- D. prudent underwriter.
Answer: D
NEW QUESTION 15
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. Trust.
- D. Power of Attorney.
Answer: C
NEW QUESTION 16
What is the most common for of corporation?
- A. Corporation sole.
- B. Registered corporation.
- C. Chartered corporation.
- D. Statutory corporation.
Answer: B
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 main sources of new English Law?
- A. International treaties.
- B. Official law reports.
- C. Legislation.
- D. Case law.
Answer: C,D
NEW QUESTION 18
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 for both parties would be invalidated 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 joint policy
- C. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
- D. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
Answer: A
NEW QUESTION 19
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. Disclosure of the name of the principal.
- B. Bankruptcy of the agent.
- C. Bankruptcy of the principal.
- D. Death of the agent.
Answer: C,D
NEW QUESTION 20
Ambiguous terms in a household insurance contract are generally construed against the
- A. insurer due to the contra proferentem rule.
- B. policyholder due to the literal rule.
- C. policyholder due to the noscitur a sociis rule.
- D. insurer due to the ejusdem generis rule.
Answer: A
NEW QUESTION 21
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. On submission of a claim.
- B. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- C. Where there is a variation in the insured risk.
- D. From the date of a breach of warranty.
Answer: C
NEW QUESTION 22
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 dominant position over Liz.
- B. a person holding a senior position at Liz's bank.
- C. Liz's husband.
- D. Liz's independent financial adviser.
Answer: A
NEW QUESTION 23
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 the contract.
- B. A condition precedent to liability.
- C. A suspensive condition.
- D. A collateral condition.
Answer: B
NEW QUESTION 24
Insurance agencies are usually created by way of
- A. deed of agreement.
- B. implied agreement.
- C. express agreement.
- D. unilateral agreement.
Answer: C
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 insured only.
- B. The insurer only.
- C. The State
- D. It is shared between the insurer and the insured.
Answer: A
NEW QUESTION 26
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. a basis of the contract clause.
- B. an express term.
- C. an exception clause.
- D. a continuing warranty.
Answer: A,B
NEW QUESTION 27
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. through fear for the safety of another person involved in an accident which he witnessed.
- B. as a result of stress or harassment at work.
- C. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
- D. through fear for his own safety in an accident.
Answer: D
NEW QUESTION 28
A claimant may possibly recover money transferred under an illegal contract when
- A. the contract is against public policy but not substantive law.
- B. the illegality makes the contract voidable rather than void.
- C. the legal portion of the contract can be severed from the illega portion.
- D. both parties to the contract are equal in wrongdoing.
Answer: D
NEW QUESTION 29
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 must buy the painting back.
- C. Bill may exercise an option to buy the painting back.
- D. Bill may keep the claim settlement and also keep the painting.
Answer: C
NEW QUESTION 30
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