Online Access Free E05 Practice Test

As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because

• A.the premium was paid by monthly installments.
• B.the misrepresentation was fraudulent.
• C.the misrepresentation was innocent.
• D.no claim had been submitted or paid.

According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer

• A.imposes a premium loading.
• B.requires notification of a claim within a very short time period.
• C.provides coverage that is more restrictive than that of other insurers.
• D.applies a specific exclusion within the policy wording.

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

A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to

• A.settle the claim and recover its outlay from the insured.
• B.avoid the claim automatically due to the breach of the policy condition.
• C.settle the claim and cancel the insurance policy from inception.
• D.only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.

The principle of subrogation prevents a policyholder from profiting from

• A.submitting a full claim recovery under more than one insurance policy.
• B.retaining salvaged property.
• C.claiming under both his insurance policy and against any negligent third party.
• D.assigning abandonment rights to the insurer.