Online Access Free E05 Exam Questions

According to statute law, an unfair term in a consumer insurance contract is defined as one which

• A.does not restrict liability for death or personal injury.
• B.causes a significant imbalance in the parties' rights to the detriment of the consumer.
• C.has been individually negotiated and is to the detriment of either one of the parties.
• D.provides insurance where the scope of cover is narrow compared to the premium charged.

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 may exercise an option to buy the painting back.
• C.Bill may keep the claim settlement and also keep the painting.
• D.Bill must buy the painting back.

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.Bankruptcy of the agent.
• B.Disclosure of the name of the principal.
• C.Death of the agent.
• D.Bankruptcy of the principal.

What is the intended purpose of a subrogation waiver clause in an insurance po

• A.The doctrine of subrogation is excluded from the policy.
• B.The insured has a duty to ensure that the insurer's subrogation rights are maintained.
• C.Cover is suspended whilst the insurer pursues an action for subrogation.
• D.The insurer's subrogation rights will not be exercised against certain parties associated with the insured.

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.Upon the request of any person(s) interested in the buildings.
• B.When fraud or arson by the insured is suspected.
• C.Where there is underinsurance.
• D.Where the building was destroyed by an explosion.