Online Access Free M05 Exam Questions

Insurance agencies are usually created by way of

• A.implied agreement.
• B.unilateral agreement.
• C.express agreement.
• D.deed of agreement.

Under the principle of indemnity, what is the objective of an insurance contract?

• A.To ensure the insured profits from the loss
• B.To ensure the insured receives full compensation for their loss regardless of the circumstances
• C.To restore the insured to the same financial position they were in before the loss
• D.To protect the insurer from fraudulent claims

Under insurance law, what is the effect of a fraudulent claim on an insurance policy?

• A.The policyholder must repay any claim payments made previously
• B.The insurer is required to pay the claim regardless of the fraud
• C.The policyholder may still receive a partial payout
• D.The insurer may cancel the policy and deny the claim

A nurse working shifts is regularly disturbed by her neighbour givig brass instrument lessons in Ihe evenings.
She is tired and losing concentration at work but is NOT at risk of losing her job. What remedy can be provided by equity as an alternative source of law to common law?

• A.Punitive damages.
• B.General damages.
• C.Specific performance
• D.An injunction.

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