E05 Examination element of M05 Insurance law Questions and Answers

A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?

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?

At what stage is insurable interest required for a marine cargo insurance policy?

How can an agency relationship be best described?

Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is £10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause. What amount will policy Y contribute towards the claim payment?

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 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

Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill ' s claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill ' s position under his insurance policy?

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?

For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?

The branch of law particularly relevant when handling negligence claims is

Why may an insurer insert a continuing warranty into an insurance policy?