[Nov-2021] Dumps Practice Exam Questions Study Guide for the E05 Exam
E05 Dumps with Practice Exam Questions Answers
NEW QUESTION 11
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- B. The doctrine of subrogation is excluded from the policy.
- C. Cover is suspended whilst the insurer pursues an action for subrogation.
- D. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
Answer: D
NEW QUESTION 12
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Reduce the claim amount in proportion to the premium it would have charged.
- B. Reject the claim, but maintain the policy.
- C. Avoid the contract, refuse all claims and keep the premium.
- D. Apply any terms it would have applied if the misrepresentation had not taken place.
Answer: A,D
NEW QUESTION 13
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must
- A. not unreasonably reject an insured's claim.
- B. handle a claims notification within 14 days.
- C. settle a claim promptly once settlement has been agreed.
- D. provide reasonable guidance to an insured to help him make a claim.
Answer: A,C,D
NEW QUESTION 14
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The delay in seeking medical treatment.
- B. The original physical injury of the dog bite.
- C. The delay in obtaining the correct medical treatment.
- D. The unhygienic washing of the dog bite.
Answer: B
NEW QUESTION 15
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 not treated as a separate legal entity.
- C. It is an organisation with a separate legal existence to its membership.
- D. It is a legal person representing one official position.
Answer: A,C
NEW QUESTION 16
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 misrepresentation was innocent.
- B. the premium was paid by monthly installments.
- C. no claim had been submitted or paid.
- D. the misrepresentation was fraudulent.
Answer: A
NEW QUESTION 17
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
- A. provides coverage that is more restrictive than that of other insurers.
- B. requires notification of a claim within a very short time period.
- C. imposes a premium loading.
- D. applies a specific exclusion within the policy wording.
Answer: B
NEW QUESTION 18
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. dies and his estate submits a claim to the insurer.
- B. assigns the contract to a third party.
- C. signs and submits the completed proposal form to the insurer.
- D. forms the contract with the insurer.
Answer: D
NEW QUESTION 19
A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under
- A. statute.
- B. a condition precedent to liability.
- C. tort.
- D. a condition subsequent to liability.
Answer: A
NEW QUESTION 20
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. Liz's husband.
- B. Liz's independent financial adviser.
- C. a person holding a dominant position over Liz.
- D. a person holding a senior position at Liz's bank.
Answer: C
NEW QUESTION 21
How can an agency relationship be best described?
- A. 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.
- B. A person has ratified another party's action.
- 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 22
At what stage is insurable interest required for a marine cargo insurance policy?
- A. At inception of the policy only.
- B. Throughout the duration of the contract.
- C. At both inception of the policy and at the time of the loss.
- D. At the time of the loss only.
Answer: D
NEW QUESTION 23
Insurance agencies are usually created by way of
- A. unilateral agreement.
- B. implied agreement.
- C. express agreement.
- D. deed of agreement.
Answer: C
NEW QUESTION 24
The branch of law particularly relevant when handling negligence claims is
- A. administrative.
- B. civil law.
- C. public law.
- D. constitutional law.
Answer: B
NEW QUESTION 25
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 must be evidenced in documentary form.
- B. It may be oral or in writing.
- C. It will usually override any implied term which conflicts with it.
- D. It may be implied by conduct.
Answer: B,C
NEW QUESTION 26
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 15 years.
- B. 3 years.
- C. 6 years.
- D. 9 years.
Answer: B
NEW QUESTION 27
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. as a result of stress or harassment at work.
- B. through fear for his own safety in an accident.
- C. through fear for the safety of another person involved in an accident which he witnessed.
- D. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
Answer: B
NEW QUESTION 28
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. Avoid the policy ab initio.
- C. Reject the claim for breach of warranty.
- D. Pay the claim in full.
Answer: D
NEW QUESTION 29
What are the main objectives of the principle of insurable interest?
- A. To reduce physical hazard and to discourage profiteering.
- B. To reduce moral hazard and to discourage wagering.
- C. To reduce physical hazard and to discourage wagering.
- D. To reduce moral hazard and to discourage profiteering.
Answer: B
NEW QUESTION 30
A breach of warranty under the general law of contract legally entitles an injured party to
- A. claim damages.
- B. avoid the contract ab initio.
- C. obtain specific performance.
- D. avoid the contract from the date of the breach.
Answer: A
NEW QUESTION 31
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