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| Section | Objectives |
|---|---|
| Legal System and Sources of Law | - Sources of law
|
| Liability and Tort | - Negligence and duty of care
|
| Insurance Claims and Legal Principles | - Claims handling principles
|
| Agency Law | - Creation and authority of agents
|
| Contract Law and Insurance Contracts | - Formation of contracts
|
1. A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
A) If there is a breach of a warranty requiring the burglar alarm to be set.
B) If the policyholder exaggerates the value of the claim.
C) If there is a subrogation action against the manufacturer of the tumble dryer.
D) If the tumble dryer is covered by extended warranty insurance.
2. Which of the following is a key principle of insurance law that requires the insured to disclose all material facts?
A) Subrogation
B) Utmost good faith
C) Contribution
D) Indemnity
3. For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as
A) a continuing warranty.
B) a basis of the contract clause.
C) an exception clause.
D) an express term.
4. The proximate cause of a loss is best described as the
A) final peril to cause the loss.
B) most remote cause of the loss.
C) most dominant cause of the loss.
D) first peril to cause the loss.
5. Which divisional court of the High Court includes a Commercial Court?
A) Family Division.
B) Queen's Bench Division.
C) Chancery Division.
D) Partnership Division.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: B,D | Question # 4 Answer: C | Question # 5 Answer: C |
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