Online Access Free E05 Exam Questions

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 seeking medical treatment.
• B.The delay in obtaining the correct medical treatment.
• C.The original physical injury of the dog bite.
• D.The unhygienic washing of the dog bite.

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?

• A.A deliberate attempt to obtain the proceeds of two policies.
• B.The inadvertent non-cancellation of a policy when a new policy is taken out.
• C.A merger between two major insurance companies.
• D.An overlap in cover between two different types of insurance policy.

A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to

• A.settle the claim and cancel the insurance policy from inception.
• B.only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
• C.avoid the claim automatically due to the breach of the policy condition.
• D.settle the claim and recover its outlay from the insured.

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 there is a subrogation action against the manufacturer of the tumble dryer.
• B.If the tumble dryer is covered by extended warranty insurance.
• C.If the policyholder exaggerates the value of the claim.
• D.If there is a breach of a warranty requiring the burglar alarm to be set.

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.Avoid the policy ab initio.
• C.Reject the claim for breach of warranty.
• D.Make an ex-gratia payment.