[Oct 30, 2021] E05 PDF Questions and Testing Engine With 52 Questions

Updated Exam Engine for E05 Exam Free Demo & 365 Day Updates

NEW QUESTION 10
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. a condition subsequent to liability.
• B. tort.
• C. statute.
• D. a condition precedent to liability.

Answer: C

 

NEW QUESTION 11
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 the safety of another person involved in an accident which he witnessed.
• C. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
• D. through fear for his own safety in an accident.

Answer: D

 

NEW QUESTION 12
At what stage is insurable interest required for a marine cargo insurance policy?

• A. At the time of the loss only.
• B. Throughout the duration of the contract.
• C. At both inception of the policy and at the time of the loss.
• D. At inception of the policy only.

Answer: A

 

NEW QUESTION 13
For this question more than 1 option is correct. You must select all the correct options to gain the mark. Which special defences are available to the fort of libel?

• A. Statutory authority.
• B. Necessity.
• C. Privilege.
• D. Honest opinion.
• E. Prescription.

Answer: C,D

 

NEW QUESTION 14
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. Cover is suspended whilst the insurer pursues an action for subrogation.
• 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.

Answer: C

 

NEW QUESTION 15
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 delay in obtaining the correct medical treatment.
• C. The unhygienic washing of the dog bite.
• D. The original physical injury of the dog bite.

Answer: D

 

NEW QUESTION 16
Ambiguous terms in a household insurance contract are generally construed against the

• A. policyholder due to the literal rule.
• B. insurer due to the ejusdem generis rule.
• C. policyholder due to the noscitur a sociis rule.
• D. insurer due to the contra proferentem rule.

Answer: D

 

NEW QUESTION 17
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.

Answer: D

 

NEW QUESTION 18
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 the policyholder exaggerates the value of the claim.
• B. If the tumble dryer is covered by extended warranty insurance.
• C. If there is a breach of a warranty requiring the burglar alarm to be set.
• D. If there is a subrogation action against the manufacturer of the tumble dryer.

Answer: A

 

NEW QUESTION 19
According to statute law, an unfair term in a consumer insurance contract is defined as one which

• A. has been individually negotiated and is to the detriment of either one of the parties.
• B. does not restrict liability for death or personal injury.
• C. causes a significant imbalance in the parties' rights to the detriment of the consumer.
• D. provides insurance where the scope of cover is narrow compared to the premium charged.

Answer: C

 

NEW QUESTION 20
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. 9 years.
• C. 3 years.
• D. 6 years.

Answer: C

 

NEW QUESTION 21
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. Bill must return the claim settlement in exchange for the painting.
• B. Bill may exercise an option to buy the painting back.
• C. Bill must buy the painting back.
• D. Bill may keep the claim settlement and also keep the painting.

Answer: B

 

NEW QUESTION 22
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?

• A. Bankruptcy of the agent.
• B. Bankruptcy of the principal.
• C. Disclosure of the name of the principal.
• D. Death of the agent.

Answer: B,D

 

NEW QUESTION 23
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. £3,000
• B. £6,000
• C. £5,000
• D. £15,000

Answer: C

 

NEW QUESTION 24
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer

• A. assigns the contract to a third party.
• B. dies and his estate submits a claim to the insurer.
• C. forms the contract with the insurer.
• D. signs and submits the completed proposal form to the insurer.

Answer: C

 

NEW QUESTION 25
Insurance agencies are usually created by way of

• A. implied agreement.
• B. deed of agreement.
• C. express agreement.
• D. unilateral agreement.

Answer: C

 

NEW QUESTION 26
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. The inadvertent non-cancellation of a policy when a new policy is taken out.
• B. A deliberate attempt to obtain the proceeds of two policies.
• C. An overlap in cover between two different types of insurance policy.
• D. A merger between two major insurance companies.

Answer: B,C

 

NEW QUESTION 27
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?

• A. International treaties.
• B. Official law reports.
• C. Legislation.
• D. Case law.

Answer: C,D

 

NEW QUESTION 28
What is the most common for of corporation?

• A. Statutory corporation.
• B. Chartered corporation.
• C. Registered corporation.
• D. Corporation sole.

Answer: C

 

NEW QUESTION 29
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. an express term.
• B. a basis of the contract clause.
• C. a continuing warranty.
• D. an exception clause.

Answer: A,B

 

NEW QUESTION 30
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