Free 2021 Insurance Law (M05) E05 dumps are available on Google Drive shared by TrainingDumps
Welcome to download the newest TrainingDumps E05 PDF dumps: https://www.trainingdumps.com/E05_exam-valid-dumps.html ( 52 Q&As)
NEW QUESTION 27
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. £7,500,000
- B. £5,000,000
- C. £10,000,000
- D. £9,000,000
Answer: D
NEW QUESTION 28
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.
Answer: A
NEW QUESTION 29
The proximate cause of a loss is best described as the
- A. final peril to cause the loss.
- B. most dominant cause of the loss.
- C. first peril to cause the loss.
- D. most remote cause of the loss.
Answer: B
NEW QUESTION 30
A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?
- A. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
- B. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
- C. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
- D. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
Answer: D
NEW QUESTION 31
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 a corporation aggregate?
- A. It is answerable to its shareholders or members.
- B. It is an organisation with a separate legal existence to its membership.
- C. It is not treated as a separate legal entity.
- D. It is a legal person representing one official position.
Answer: A,B
NEW QUESTION 32
In terms of private motor insurance, a renewal offer can be accepted
- A. only by written communication.
- B. by the proposer acting in reliance of the offer.
- C. only by the proposer personally.
- D. by any third party.
Answer: B
NEW QUESTION 33
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To enable an insurer to charge an additional premium if the warranty is continually breached.
- B. To encourage good risk management by the insured throughout the policy period.
- C. To ensure that underinsurance is avoided at all times.
- D. To maintain the annual aggregate limit of liability throughout the policy period.
Answer: B
NEW QUESTION 34
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 breach of a warranty requiring the burglar alarm to be set.
- B. If the policyholder exaggerates the value of the claim.
- C. If the tumble dryer is covered by extended warranty insurance.
- D. If there is a subrogation action against the manufacturer of the tumble dryer.
Answer: B
NEW QUESTION 35
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. Avoid the policy ab initio.
- B. Make an ex-gratia payment.
- C. Pay the claim in full.
- D. Reject the claim for breach of warranty.
Answer: C
NEW QUESTION 36
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, nuisance and battery.
- C. trespass to goods and conversion only.
- D. trespass to goods, conversion and nuisance only,
Answer: A
NEW QUESTION 37
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. prudent underwriter.
- B. honest proposer.
- C. reasonable person.
- D. diligent broker.
Answer: A
NEW QUESTION 38
How can an agency relationship be best described?
- A. A person has ratified another party's action.
- B. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
- C. A person has transferred his obligations under a contract to another party.
- D. A person has the authority to act on behalf of another party.
Answer: D
NEW QUESTION 39
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
- A. applies a specific exclusion within the policy wording.
- B. provides coverage that is more restrictive than that of other insurers.
- C. requires notification of a claim within a very short time period.
- D. imposes a premium loading.
Answer: C
NEW QUESTION 40
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. a person holding a senior position at Liz's bank.
- B. a person holding a dominant position over Liz.
- C. Liz's husband.
- D. Liz's independent financial adviser.
Answer: B
NEW QUESTION 41
For this question more than 1 option is correct. You must select all the correct options to gain the mark. Which special defences are available to the fort of libel?
- A. Statutory authority.
- B. Prescription.
- C. Honest opinion.
- D. Privilege.
- E. Necessity.
Answer: C,D
NEW QUESTION 42
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. assigns the contract to a third party.
- B. signs and submits the completed proposal form to the insurer.
- C. dies and his estate submits a claim to the insurer.
- D. forms the contract with the insurer.
Answer: D
NEW QUESTION 43
What is the most common for of corporation?
- A. Chartered corporation.
- B. Statutory corporation.
- C. Corporation sole.
- D. Registered corporation.
Answer: D
NEW QUESTION 44
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
- A. Trust.
- B. Power of Attorney.
- C. Lien.
- D. Coinsurance.
Answer: A
NEW QUESTION 45
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