Chapter 3 Special Types Flashcards
In which situation would a public liability policy, rather than a motor policy, typically cover the risk?
A) A mobile crane working on a construction site with restricted public access.
B) A mobile crane working on a road next to a construction site.
C) A vehicle involved in demolition work on a public road.
D) A site clearance vehicle working exclusively on a public road.
A) A mobile crane working on a construction site with restricted public access.
What is typically excluded in the purpose of use wording for a special types vehicle?
A) Business use of the vehicle.
B) Use of the vehicle for social, domestic, and pleasure purposes.
C) Use of the vehicle for business-related hire or reward.
D) Use of the vehicle for towing trailers within legal limits.
B) Use of the vehicle for social, domestic, and pleasure purposes.
A mobile crane is working on a road to lift materials for a construction project. What type of coverage would apply in this situation?
A) Public liability insurance for third-party risks.
B) Motor policy under the Road Traffic Act (RTA) for use on the road.
C) Third-party working risk insurance for activities on the site.
D) **Special types policy covering construction work only on-site.
B) Motor policy under the Road Traffic Act (RTA) for use on the road.
Which of the following is typically excluded from a special types vehicle policy?
A) Use of the vehicle for hire or reward purposes.
B) Use of the vehicle by the policyholder’s employees.
C) Use of the vehicle for transporting equipment for business.
D) Use of the vehicle by any driver, including the hirer’s.
A) Use of the vehicle for hire or reward purposes.
Which of the following vehicles would NOT be covered under a standard agricultural vehicle policy?
A) A tractor used solely for hauling produce on the farm.
B) A quad bike used for agricultural tasks on the farm.
C) A tractor used for crop spraying on another farm.
D) A self-propelled combine harvester used for harvesting crops.
C) A tractor used for crop spraying on another farm.
If a tractor is towing a threshing machine, which of the following statements is true?
A) The threshing machine is automatically covered under the tractor’s motor policy.
B) The threshing machine requires separate coverage due to its high value.
C) The threshing machine is covered under the policy if the tractor has comprehensive cover.
D) The threshing machine is covered by the same policy if it is attached to the tractor.
B) The threshing machine requires separate coverage due to its high value.
Which activity is typically excluded from agricultural vehicle insurance policies?
A) Hauling materials for spreading on roads during snow.
B) Use for agricultural tasks like ploughing or harvesting.
C) Racing a tractor at a local event.
D) Towing trailers with farm equipment.
C) Racing a tractor at a local event.
A farmer lends their tractor to a neighbor for agricultural work. The neighbor’s employee causes damage while operating the tractor. Who is covered under the insurance policy?
A) Only the farmer is covered under the policy.
B) The farmer and the neighbor are both covered for third-party claims.
C) The neighbor’s employee is covered for damage to the tractor.
D) Only the third-party claimant is covered under the policy.
B) The farmer and the neighbor are both covered for third-party claims.
Which of the following is typically excluded under private motor car policies?
A) A hire car used for a wedding.
B) A bus used for a city transportation route.
C) A goods-carrying vehicle used for transporting products.
D) A taxi used to transport passengers for hire.
D) A taxi used to transport passengers for hire.
A vehicle with less than nine passenger seats that can be hailed on the street is classified as which type of vehicle?
A) Private hire vehicle
B) Public hire vehicle
C) Self-drive hire vehicle
D) Commercial goods vehicle
B) Public hire vehicle
Which of the following is not a characteristic of private hire vehicles?
A) They must be pre-booked by the customer.
B) They are licensed to ply for hire on the streets.
C) They are restricted to a specific area or radius.
D) The vehicle is let directly from the policyholder’s base to the hirer.
B) They are licensed to ply for hire on the streets.
Which of the following exclusions applies to self-drive hire vehicles?
A) Use for private hire purposes.
B) Use for social, domestic, and pleasure purposes.
C) Use while drawing more trailers than permitted by law.
D) Use for commercial goods transport.
C) Use while drawing more trailers than permitted by law.
A vehicle with more than eight seats (including the driver’s seat) is classified as:
A) A public hire vehicle
B) A public service vehicle (PSV)
C) A private hire vehicle
D) A self-drive hire vehicle
B) A public service vehicle (PSV)
Under the Transport Act 1985, a small bus permit allows an organisation to operate a bus with 9–16 seats without PSV regulations. What condition must be met?
A) The bus must not be used for passenger transport.
B) The organisation must provide services free of charge.
C) The organisation must not make a profit from fares.
D) The bus must only be used for school trips.
C) The organisation must not make a profit from fares.
Which of the following scenarios would NOT be covered under a private motor car policy?
A) A father teaching his son to drive without charging money.
B) A driving instructor giving paid lessons in a dual-controlled vehicle.
C) A friend teaching a learner driver and being reimbursed for fuel only.
D) A learner driver practicing in their family’s insured car.
B) A driving instructor giving paid lessons in a dual-controlled vehicle.
What is a typical requirement for insuring a vehicle used for professional driving instruction?
A) The vehicle must be black in color.
B) The vehicle must be owned by the learner.
C) The vehicle must have dual controls installed.
D) The learner must provide their own insurance.
C) The vehicle must have dual controls installed.
Why do some insurers apply a compulsory excess for all drivers in a professional driving instruction policy?
A) To make insurance policies cheaper.
B) To avoid disputes over who was in control of the vehicle at the time of an accident.
C) To prevent inexperienced drivers from enrolling in lessons.
D) To discourage driving instructors from teaching beginners.
B) To avoid disputes over who was in control of the vehicle at the time of an accident.
What does a contingent liability policy cover?
A) The vehicle owner if their policy is invalid.
B) The principal or employer if a third party’s insurance is inoperative.
C) Any employee using their personal car for business.
D) Comprehensive damage to a vehicle used for work.
B) The principal or employer if a third party’s insurance is inoperative.
What is a key difference between occasional business use (OBU) and contingent liability insurance?
A) OBU provides primary cover, while contingent liability is secondary.
B) OBU does not issue a certificate of insurance.
C) Contingent liability provides cover for vehicle damage.
D) Contingent liability always includes RTA cover.
A) OBU provides primary cover, while contingent liability is secondary.
What is a key feature of fleet insurance?
A) Each vehicle has an individual insurance policy.
B) Premiums are based solely on general market trends.
C) Multiple vehicles are covered under one policy, with risk assessed at a fleet level.
D) Only goods vehicles can be insured under a fleet policy.
C) Multiple vehicles are covered under one policy, with risk assessed at a fleet level.
Why might an employer selectively offer OBU cover to certain employees?
A) To avoid covering employees with comprehensive personal policies.
B) To prevent employees from falsely claiming business use for personal accidents.
C) Because OBU policies do not cover third-party liability.
D) Because OBU cover is always cheaper than standard business-use insurance.
B) To prevent employees from falsely claiming business use for personal accidents.
Which of the following is NOT covered under an occasional business use (OBU) policy?
A) Business use for the employer.
B) Personal (social, domestic, and pleasure) use.
C) Damage to the vehicle, if comprehensive cover is purchased.
D) Third-party liability while driving for business.
B) Personal (social, domestic, and pleasure) use.
What is the main reason motor trade policies are flexible?
A) To allow policyholders to change vehicle details without notifying the insurer.
B) To provide cheaper premiums for sole traders.
C) To limit coverage to specific types of businesses.
D) To ensure all vehicles in the business are insured comprehensively.
A) To allow policyholders to change vehicle details without notifying the insurer.
Which type of policy covers damage occurring on the motor trader’s premises?
A) Road Risks Policy
B) Garage/Internal Risks Policy
C) Fleet Policy
D) Named Driver Policy
B) Garage/Internal Risks Policy
Under a road risks policy, which of the following is typically excluded?
A) Theft of a vehicle under the trader’s control.
B) Accidents on public roads.
C) Damage occurring at the insured’s business premises.
D) Damage caused by fire or lightning.
C) Damage occurring at the insured’s business premises.
A motor trader offers a courtesy car while repairing a customer’s vehicle. Who typically insures it?
A) The motor trader’s insurer.
B) The customer’s insurer.
C) The vehicle manufacturer.
D) The government’s Motor Insurance Bureau.
B) The customer’s insurer.
What is “conversion” in motor trade insurance?
A) A type of vehicle modification requiring special insurance.
B) A trader unknowingly accepting a stolen vehicle in part exchange.
C) The process of changing a vehicle’s insurance class.
D) The extension of a road risks policy to cover personal use.
B) A trader unknowingly accepting a stolen vehicle in part exchange.
Which of the following would most likely require a combined motor trade policy?
A) A car dealer who sells vehicles from home.
B) A mobile valeting business.
C) A large dealership with a garage and repair facility.
D) A vehicle breakdown recovery business.
C) A large dealership with a garage and repair facility.
What is the main purpose of breakdown insurance?
A) To provide recovery after an accident.
B) To cover mechanical failure and vehicle recovery.
C) To replace a comprehensive motor policy.
D) To cover repair costs for mechanical issues.
B) To cover mechanical failure and vehicle recovery.
How does vehicle-based breakdown cover operate?
A) It covers only the policyholder, regardless of the vehicle they are in.
B) It covers a specific vehicle, regardless of who is driving.
C) It applies only when the vehicle breaks down at home.
D) It provides unlimited recovery services for all vehicles owned by the insured.
B) It covers a specific vehicle, regardless of who is driving.
What is a key requirement for breakdown cover to apply to a caravan or trailer?
A) It must be brand new and never used before.
B) It must be owned by the policyholder for at least a year.
C) It must comply with size and weight restrictions and be properly attached to the towing vehicle.
D) It must have its own separate breakdown policy.
C) It must comply with size and weight restrictions and be properly attached to the towing vehicle.
Under a personal-based breakdown policy, which of the following is correct?
A) The policy covers a specific vehicle, no matter who is driving.
B) The policyholder and their partner are covered in any vehicle they are travelling in.
C) It only covers the vehicle if it is registered in the policyholder’s name.
D) It excludes family members unless they are named drivers on a motor insurance policy.
B) The policyholder and their partner are covered in any vehicle they are travelling in.
