E05 Online Dumps Boost Your Career

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1. Stuart has a joint mortgage with his wife of £60,000 and a personal loan of £5,000, but no other debts. How much insurable interest does his wife have in his life?

A maximum of £30,000.

A maximum of £60,000.

A maximum of £65,000.

An unlimited amount.

2. A warranty in a household buildings insurance policy states that the chimney of the property should be professionally swept every year prior to winter use. A loss occurs as a result of severe winds and the chimney is damaged.

How is the insurer legally entitled to respond to the claim for property damage to the chimney if the insured has breached the warranty?

Avoid the claim but keep the policy in force.

Reduce the claim payment pro rata.

Reject the claim and terminate the policy.

Settle the claim in full.

3. If an insurance claim is disputed and causation is an issue, what approach will a court take when looking to identify the proximate cause of the loss?

It will accept the decision of the jury as guided on points of law by the judge.

It will follow decisions made by international courts.

It will rely on the common understanding of causation by a normal person.

It will require proof of causation by scientific and/or technical means.

4. The UK Parliament consists of the

House of Commons.

House of Lords.

Monarchy.

Privy Council.

Supreme Court.

5. A ‘litigation friend’ (‘next friend’) is responsible for litigation costs awarded against a claimant who is a

bankrupt.

company.

partnership.

minor.

6. Why may an insurer insert a continuing warranty into an insurance policy?

To avoid paying a loss if it is caused by a peril stated in the policy.

To enable an insurer to charge an additional premium if the warranty is breached.

To ensure that a full sum insured is declared to avoid underinsurance.

To ensure that measures are taken to improve risk management.

7. Two policies were incepted and both were in joint names. Policy X was arranged by a lessor and lessee and policy Y was taken out by a married couple who have an equal share in their home.

What are the likely types of policy X and policy Y?

Policy X is a composite policy and policy Y is a joint policy.

Policy X is a joint policy and policy Y is a composite policy.

Both policy X and policy Y are composite.

Both policy X and policy Y are joint.

8. Katy’s mother bought her an iron, which turned out to be defective and caused a fire. It resulted in damage to Katy’s personal property amounting to £500 and also caused severe burns to Katy’s right hand.

In order to achieve a recovery at law, which legal action should be pursued?

Katy’s mother should sue the seller in tort based on the principle of negligence.

Katy should sue her mother based on the principle of vicarious liability.

Katy should sue the manufacturer based on the provisions of the Consumer Protection Act 1987.

Katy should sue the seller for breach of contract in selling a defective electrical product.

9. An insurance policy would be illegal and void if it is

an employer’s liability policy for a company without any employees.

a household contents policy insuring a gun collection.

a products liability policy covering fines for health and safety breaches.

a marine cargo policy taken out by a person who is not the owner of the cargo.

10. Whilst Tim was on holiday, unknown to him his agent made a contract on his behalf. Tim is happy to ratify the contract but he does want to change a minor term. The services under the contract are scheduled to be carried out next week.

What is the legal position regarding ratification of the contract?

Tim cannot ratify the contract as it was made without his knowledge.

Tim cannot ratify the contract excluding the minor term as the whole contract must be ratified.

Tim can ratify the contract and change the term as it is only a minor term.

Tim can ratify the contract and change the minor term if this is done within reasonable time.

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11. Joe has been injured in a motor accident. Under section 151 of the Road Traffic Act 1988, he has the right to make a direct claim against the insurer of the negligent driver, Sally, if he

is a minor and has no contractual capacity.

has an unsatisfied court judgment against Sally.

has already had a claim against the Motor Insurers’ Bureau rejected.

was wearing a seat belt at the time of the accident and no contributory negligence applies.

12. When Fred’s yacht ran aground on rocks, but was NOT totally destroyed, he abandoned his rights to the yacht to his insurer. However, he did NOT serve a formal notice of abandonment on the insurer. If Fred submits a claim, the insurer is entitled to classify it as

an actual total loss.

a constructive total loss.

a partial loss.

salvage.

13. In contract law, acceptance of an offer

may be achieved by taking no action.

may be implied by conduct.

may vary the terms of the offer.

must be made in writing.

must exactly match the terms of the offer.

14. Which insurance terms and conditions can reduce a policyholder’s entitlement to a full indemnity following a loss?

An average clause.

An insuring clause.

A policy excess.

A subrogation clause.

15. An insurer has paid a policyholder for fire damage to his home caused by an electrician’s faulty work, less the policy excess.

How should any subrogation action for damages be brought against the negligent electrician and for what amount(s)?

By the insurer and the insured separately in their own names for the amount of the claim payment and the policy excess respectively.

By the insurer only in its own name for the amount of the claim payment and the policy excess.

By the insurer in the name of the insured for the amount of the claim payment only.

By the insurer in the name of the insured for the amount of the claim payment and the policy excess.

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