Online Access Free M05 Exam Questions

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

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

What is the principal reason for which a proposer is asked by the insurer whether his car will be driven by anyone else?

• A.It is a material circumstance.
• B.To enable a discount to be applied.
• C.To enable a loading to be applied.
• D.To establish whether insurable interest exists.

The test of the materiality of facts in an insurance contract is defined according to the opinion of a

• A.prudent underwriter.
• B.diligent broker.
• C.honest proposer.
• D.reasonable person.

In what circumstances is abandonment automatic under a marine hull insurance policy?

• A.The actual total loss of the vessel.
• B.The constructive total loss of the vessel.
• C.The insured has performed an action of abandonment.
• D.The insured has sent a formal notice of abandonment.

Which of the following is true regarding the insurable interest in life insurance?

• A.The policyholder must have a financial interest in the life of the person insured
• B.Insurable interest is not required for life insurance policies
• C.The policyholder must have a financial interest in the property of the person insured
• D.Insurable interest is required only at the time the policy is issued