[Aug-2022] Insurance Law (M05) E05 Exam Practice Test Questions Dumps Bundle!
2022 Updated E05 PDF for the E05 Tests Free Updated Today!
NEW QUESTION 23
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. prudent underwriter.
- B. reasonable person.
- C. diligent broker.
- D. honest proposer.
Answer: A
NEW QUESTION 24
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- B. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- C. The doctrine of subrogation is excluded from the policy.
- D. Cover is suspended whilst the insurer pursues an action for subrogation.
Answer: A
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. No one as Tim is not a party to the insurance contract.
- B. The insurer at all times.
- C. Paul as it is a consumer contract.
- D. Both the insurer and Paul at different times.
Answer: B
NEW QUESTION 26
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods only.
- B. trespass to goods, conversion and nuisance only,
- C. trespass to goods, conversion, nuisance and battery.
- D. trespass to goods and conversion only.
Answer: A
NEW QUESTION 27
What are the main objectives of the principle of insurable interest?
- A. To reduce physical hazard and to discourage profiteering.
- B. To reduce moral hazard and to discourage profiteering.
- C. To reduce physical hazard and to discourage wagering.
- D. To reduce moral hazard and to discourage wagering.
Answer: D
NEW QUESTION 28
A claimant may possibly recover money transferred under an illegal contract when
- A. both parties to the contract are equal in wrongdoing.
- B. the contract is against public policy but not substantive law.
- C. the legal portion of the contract can be severed from the illega portion.
- D. the illegality makes the contract voidable rather than void.
Answer: A
NEW QUESTION 29
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. Legislation.
- B. Official law reports.
- C. International treaties.
- D. Case law.
Answer: A,D
NEW QUESTION 30
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?
- A. It must be evidenced in documentary form.
- B. It may be oral or in writing.
- C. It may be implied by conduct.
- D. It will usually override any implied term which conflicts with it.
Answer: B,D
NEW QUESTION 31
Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
- A. £10,000,000
- B. £5,000,000
- C. £9,000,000
- D. £7,500,000
Answer: C
NEW QUESTION 32
What is the most common for of corporation?
- A. Corporation sole.
- B. Registered corporation.
- C. Chartered corporation.
- D. Statutory corporation.
Answer: B
NEW QUESTION 33
In terms of private motor insurance, a renewal offer can be accepted
- A. only by the proposer personally.
- B. only by written communication.
- C. by any third party.
- D. by the proposer acting in reliance of the offer.
Answer: D
NEW QUESTION 34
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. statute.
- B. tort.
- C. a condition precedent to liability.
- D. a condition subsequent to liability.
Answer: A
NEW QUESTION 35
In what circumstances is abandonment automatic under a marine hull insurance policy?
- A. The insured has performed an action of abandonment.
- B. The actual total loss of the vessel.
- C. The insured has sent a formal notice of abandonment.
- D. The constructive total loss of the vessel.
Answer: B
NEW QUESTION 36
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Pay the claim in full.
- B. Make an ex-gratia payment.
- C. Reject the claim for breach of warranty.
- D. Avoid the policy ab initio.
Answer: A
NEW QUESTION 37
The branch of law particularly relevant when handling negligence claims is
- A. public law.
- B. constitutional law.
- C. administrative.
- D. civil law.
Answer: D
NEW QUESTION 38
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 exception clause.
- B. an express term.
- C. a continuing warranty.
- D. a basis of the contract clause.
Answer: B,D
NEW QUESTION 39
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. dies and his estate submits a claim to the insurer.
- D. signs and submits the completed proposal form to the insurer.
Answer: A
NEW QUESTION 40
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
- A. handle a claims notification within 14 days.
- B. settle a claim promptly once settlement has been agreed.
- C. provide reasonable guidance to an insured to help him make a claim.
- D. not unreasonably reject an insured's claim.
Answer: B,C,D
NEW QUESTION 41
At what stage is insurable interest required for a marine cargo insurance policy?
- A. At inception of the policy only.
- B. Throughout the duration of the contract.
- C. At the time of the loss only.
- D. At both inception of the policy and at the time of the loss.
Answer: C
NEW QUESTION 42
Insurance agencies are usually created by way of
- A. unilateral agreement.
- B. express agreement.
- C. implied agreement.
- D. deed of agreement.
Answer: B
NEW QUESTION 43
......
Fully Updated Dumps PDF - Latest E05 Exam Questions and Answers: https://www.realvce.com/E05_free-dumps.html
100% Free E05 Exam Dumps to Pass Exam Easily: https://drive.google.com/open?id=1Stl-MbB1XrFFotKlW8yDu-fFbPueEJcj