[Dec 31, 2021] Fully Updated E05 Dumps - 100% Same Q&A In Your Real Exam
Latest E05 Exam Dumps - Valid and Updated Dumps
NEW QUESTION 16
Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?
- A. The insurer only.
- B. It is shared between the insurer and the insured.
- C. The State
- D. The insured only.
Answer: D
NEW QUESTION 17
What are the main objectives of the principle of insurable interest?
- A. To reduce moral hazard and to discourage profiteering.
- B. To reduce physical hazard and to discourage wagering.
- C. To reduce moral hazard and to discourage wagering.
- D. To reduce physical hazard and to discourage profiteering.
Answer: C
NEW QUESTION 18
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 19
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. Avoid the contract, refuse all claims and keep the premium.
- B. Reduce the claim amount in proportion to the premium it would have charged.
- C. Apply any terms it would have applied if the misrepresentation had not taken place.
- D. Reject the claim, but maintain the policy.
Answer: B,C
NEW QUESTION 20
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 21
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 22
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 premium was paid by monthly installments.
- B. the misrepresentation was innocent.
- C. no claim had been submitted or paid.
- D. the misrepresentation was fraudulent.
Answer: B
NEW QUESTION 23
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. Where the building was destroyed by an explosion.
- B. Upon the request of any person(s) interested in the buildings.
- C. Where there is underinsurance.
- D. When fraud or arson by the insured is suspected.
Answer: B,D
NEW QUESTION 24
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. The insurer at all times.
- B. No one as Tim is not a party to the insurance contract.
- C. Both the insurer and Paul at different times.
- D. Paul as it is a consumer contract.
Answer: A
NEW QUESTION 25
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 26
Which divisional court of the High Court includes a Commercial Court?
- A. Family Division.
- B. Chancery Division.
- C. Queen's Bench Division.
- D. Partnership Division.
Answer: B
NEW QUESTION 27
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 28
The branch of law particularly relevant when handling negligence claims is
- A. civil law.
- B. administrative.
- C. constitutional law.
- D. public law.
Answer: A
NEW QUESTION 29
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 30
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 the authority to act on behalf of another party.
- D. A person has transferred his obligations under a contract to another party.
Answer: C
NEW QUESTION 31
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. a person holding a dominant position over Liz.
- C. a person holding a senior position at Liz's bank.
- D. Liz's independent financial adviser.
Answer: B
NEW QUESTION 32
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 33
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