Chapter 3 Flashcards
What is the primary purpose of a motor insurance policy?
A. To generate revenue for insurers
B. To comply with taxation laws
C. To provide financial protection against motor risks
D. To promote vehicle safety
C
Which section of a motor insurance policy typically covers damage to a third party’s property?
A. Comprehensive cover
B. Third-party liability
C. Personal accident cover
D. Breakdown insurance
B
Which type of vehicle is most likely to be covered under contingent liability insurance?
A. Privately owned cars
B. Leased company vehicles
C. Motorcycles
D. Agricultural vehicles
B
What does comprehensive motor insurance cover that third-party insurance does not?
A. Legal liabilities
B. Fire and theft
C. Damage to the insured vehicle
D. Breakdowns
C
What is a key characteristic of legal expenses insurance under motor policies?
A. Covers repair costs for damages
B. Pays for legal fees related to motor accidents
C. Insures against theft of legal documents
D. Compensates for lost wages during court cases
B
Which policy extension is specifically designed for agricultural vehicles?
A. Business use extension
B. Seasonal use cover
C. Passenger liability cover
D. Goods-carrying liability
B
What is the usual focus of a policy covering “special types” of vehicles?
A. Private cars used for personal purposes
B. High-performance vehicles
C. Construction and industrial vehicles
D. Imported vehicles
C
What additional cover is typically included in passenger-carrying vehicle policies?
A. Loss of earnings for drivers
B. Liability for passenger injuries
C. Fuel reimbursement
D. Vehicle maintenance
B
In motor trade policies, what does the “road risks” section primarily cover?
A. Damage to premises
B. Injuries to employees
C. Vehicles being driven or used on the road
D. Theft of vehicles stored in garages
C
What additional cover is often included in comprehensive motor policies?
A. Personal accident cover and legal expenses
B. Breakdown recovery only
C. Fire and theft only
D. Road tax renewal
A
What additional cover is often included in comprehensive motor policies?
A. Personal accident cover and legal expenses
B. Breakdown recovery only
C. Fire and theft only
D. Road tax renewal
A
What does third-party liability insurance not cover?
A. Damage to another person’s property
B. Injuries to the policyholder
C. Legal costs for third-party claims
D. Injuries caused to other people
B
When is a motor trade policy applicable?
A. When a business operates multiple private cars
B. When a business sells or repairs vehicles
C. For agricultural vehicle usage
D. For occasional personal vehicle use
B
What is the primary purpose of the Motor Insurance Database (MID)?
A. To store all vehicle registration details
B. To assist insurers in managing claims
C. To monitor insured vehicles in the UK
D. To track road tax compliance
C
What is the main feature of a goods-carrying vehicle insurance policy?
A. Coverage for passengers only
B. Protection against goods theft in transit
C. Insurance for transporting goods in vehicles
D. Universal coverage for all vehicles
C
Which type of vehicle is covered under “special types” insurance?
A. Passenger vehicles
B. Emergency vehicles
C. Industrial equipment like cranes
D. Personal motorcycles
C
What is breakdown insurance designed to cover?
A. Replacement of vehicle parts
B. Costs of repairs following an accident
C. Assistance for vehicle failures while traveling
D. Insurance for damaged goods during transit
C
What is the usual benefit of legal expenses insurance?
A. Assistance in resolving traffic violations
B. Coverage for physical vehicle damage
C. Support in legal disputes after a motor accident
D. Protection against vandalism
C
What is the main purpose of agricultural and forestry vehicle insurance?
A. To cover accidents during road usage only
B. To provide specific cover for farming and forestry vehicles
C. To protect drivers against personal injury
D. To offer universal coverage for all business vehicles
B
What does the term “contingent liability” imply in motor insurance?
A. Liability when an insured driver breaches policy terms
B. Coverage for risks not directly linked to the insured vehicle
C. Liability arising from an employer’s use of an employee’s vehicle
D. Liability for accidents involving unregistered vehicles
C
Which policy is most suitable for a taxi driver?
A. Comprehensive insurance
B. Motorcycle policy
C. Passenger-carrying vehicle insurance
D. Contingent liability policy
C
Which policy is most suitable for a taxi driver?
A. Comprehensive insurance
B. Motorcycle policy
C. Passenger-carrying vehicle insurance
D. Contingent liability policy
C
Which vehicle type is commonly excluded from a standard motor policy?
A. Agricultural vehicles
B. Private cars
C. Motorcycles
D. Passenger-carrying vehicles
A
Which vehicle type is commonly excluded from a standard motor policy?
A. Agricultural vehicles
B. Private cars
C. Motorcycles
D. Passenger-carrying vehicles
A
A farmer’s tractor damages a boundary wall while being used on private land. What type of insurance is likely to cover this incident?
A. Comprehensive motor insurance
B. Agricultural and forestry vehicle insurance
C. Third-party liability insurance
D. Goods-carrying vehicle insurance
B
A taxi driver has a collision with another vehicle while carrying passengers. Which policy is essential for covering the passengers’ injuries?
A. Comprehensive motor insurance
B. Passenger-carrying vehicle insurance
C. Contingent liability insurance
D. Breakdown insurance
B
An employee uses their personal car for a work-related trip. If an accident occurs during this trip, which type of insurance may be needed to cover liability?
A. Motor trade insurance
B. Contingent liability insurance
C. Commercial vehicle insurance
D. Special types insurance
B
A goods-carrying truck sustains significant damage while transporting equipment. What type of motor insurance policy is best suited for this vehicle?
A. Goods-carrying vehicle insurance
B. Breakdown insurance
C. Personal motor insurance
D. Agricultural and forestry vehicle insurance
A
A policyholder’s car suffers engine damage due to a lightning strike during a thunderstorm. What section of a comprehensive motor policy is likely to cover this?
A. Legal expenses insurance
B. Accidental damage cover
C. Breakdown insurance
D. Contingent liability cover
B
A dealership suffers fire damage to several vehicles kept in storage for sale. Which insurance policy would typically respond to this loss?
A. Passenger-carrying vehicle insurance
B. Goods-carrying vehicle insurance
C. Motor trade insurance
D. Comprehensive motor insurance
C
A driver accidentally fills their diesel vehicle with petrol and causes extensive damage to the fuel system. Which policy add-on would cover the cost of repair?
A. Breakdown insurance
B. Misfuelling cover
C. Comprehensive insurance
D. Legal expenses insurance
B
A company hires a crane for temporary use on a construction project, and it causes damage to a nearby structure. Which type of policy is most relevant?
A. Contingent liability insurance
B. Special types insurance
C. Commercial vehicle insurance
D. Goods-carrying vehicle insurance
B
A self-employed courier’s van is stolen while parked outside their home. What type of policy provides coverage for the loss?
A. Third-party liability insurance
B. Comprehensive motor insurance
C. Goods-carrying vehicle insurance
D. Motor trade insurance
C
A breakdown recovery truck damages a client’s car while towing it to a repair shop. Which type of policy would cover this incident?
A. Comprehensive motor insurance
B. Breakdown insurance
C. Motor trade insurance
D. Passenger-carrying vehicle insurance
C
Where are the territorial limits typically found within a motor insurance policy?
a.
The description of purpose of use.
b.
The definitions.
c.
The recital clause.
d.
The operative clauses.
D
