Online Access Free E05 Practice Test

For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?

• A.Where there is underinsurance.
• B.When fraud or arson by the insured is suspected.
• C.Where the building was destroyed by an explosion.
• D.Upon the request of any person(s) interested in the buildings.

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 an express term in reaching or recording an agreement?

• A.It may be implied by conduct.
• B.It must be evidenced in documentary form.
• C.It may be oral or in writing.
• D.It will usually override any implied term which conflicts with it.

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.Coinsurance.
• B.Trust.
• C.Lien.
• D.Power of Attorney.

John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

• A.£15,000
• B.£6,000
• C.£3,000
• D.£5,000

What is the intended purpose of a subrogation waiver clause in an insurance po

• A.Cover is suspended whilst the insurer pursues an action for subrogation.
• B.The insured has a duty to ensure that the insurer's subrogation rights are maintained.
• C.The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
• D.The doctrine of subrogation is excluded from the policy.