Online Access Free M05 Practice Test

In what circumstances is abandonment automatic under a marine hull insurance policy?

• A.The insured has sent a formal notice of abandonment.
• B.The insured has performed an action of abandonment.
• C.The constructive total loss of the vessel.
• D.The actual total loss of the vessel.

In terms of private motor insurance, a renewal offer can be accepted

• A.only by written communication.
• B.by any third party.
• C.only by the proposer personally.
• D.by the proposer acting in reliance of the offer.

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

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 would be maintained in full for the innocent party as the cover is likely to be a joint policy
• B.Cover for both parties would be invalidated 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 composite policy.
• D.Cover for both parties would be invalidated as the cover is likely to be a joint policy.

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