Online Access Free E05 Practice Test

What are the main objectives of the principle of insurable interest?

• A.To reduce physical hazard and to discourage wagering.
• B.To reduce moral hazard and to discourage wagering.
• C.To reduce moral hazard and to discourage profiteering.
• D.To reduce physical hazard and to discourage profiteering.

What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?

• A.35% for personal injury cases and 25% for employment tribunal cases.
• B.25% for personal injury cases and 35% for employment tribunal cases.
• C.50% for both cases.
• D.35% for both cases.

Which divisional court of the High Court includes a Commercial Court?

• A.Partnership Division.
• B.Queen's Bench Division.
• C.Chancery Division.
• D.Family Division.

Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?

• A.The State
• B.The insured only.
• C.It is shared between the insurer and the insured.
• D.The insurer only.

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