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| Section | Weight | Objectives |
|---|---|---|
| English Legal System and Basic Concepts | 10% | - Nature and sources of law
|
| Law of Agency | 8% | - Authority, duties, rights and liabilities
|
| Formation of Insurance Contracts | 18% | - Utmost good faith, disclosure, representation
|
| Law of Torts | 8% | - Principles of tort liability
|
| Terms and Interpretation of Insurance Contracts | 16% | - Conditions, warranties, exceptions
|
| Legislation and Regulation | 14% | - Consumer protection, data protection, FCA/PRA rules
|
| Claims and Loss Settlement | 14% | - Notification, proof of loss, measure of indemnity
|
| Law of Contract | 12% | - Formation of contract
|
1. In the context of insurance law, who is considered a third-party claimant?
A) A person who suffers a loss or injury caused by the policyholder's actions
B) A family member of the policyholder
C) The policyholder who initiates a claim
D) An insurance broker acting on behalf of a client
2. Why may an insurer insert a continuing warranty into an insurance policy?
A) To enable an insurer to charge an additional premium if the warranty is continually breached.
B) To encourage good risk management by the insured throughout the policy period.
C) To ensure that underinsurance is avoided at all times.
D) To maintain the annual aggregate limit of liability throughout the policy period.
3. A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
A) Power of Attorney.
B) Trust.
C) Coinsurance.
D) Lien.
4. According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
A) imposes a premium loading.
B) applies a specific exclusion within the policy wording.
C) provides coverage that is more restrictive than that of other insurers.
D) requires notification of a claim within a very short time period.
5. Which of the following is a characteristic of a contract of insurance?
A) It must be written in a formal language
B) It involves a promise of a return on investment
C) It requires both parties to meet in person
D) It is always a contract of adhesion
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |
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