If5 Flashcards
Following the introduction of the Fifth EU Motor Insurance Directive (now codified in the EU Motor Insurance Directive 2009), under what circumstances, if any, will someone who has suffered property damage caused by an unidentified vehicle be able to claim compensation?
If the victim has also sustained ‘significant personal injury’.
Motor insurance cover notes normally provide cover for a maximum period of up to:
30 days
In fleet rating, what is meant by the term ‘vehicle year’?
The exposure of one vehicle for a full policy year.
What is max award binding on insurer-Financial Ombudsman Service (FOS)?
The maximum award that the FOS can make which is binding on an insurer is £415,000.
What additional cover is provided by a third party only motor policy that would not be provided under a Road Traffic Act (RTA) only policy?
The correct answer is: Liability for third party property damage above the statutory minimum.
David has an accident, for which he is to blame, while driving a friend’s car. He is covered under the ‘driving other cars’ extension of his own motor policy and also under the comprehensive ‘any driver’ policy which insures the vehicle itself. What is the correct position with regard to any claims that arise?
The correct answer is: The insurer of the vehicle will deal with both the ‘own damage’ and third party claims.
Ayesha’s car is damaged in an accident and she suffers a minor whiplash injury. Her car is only insured for third party risks and because liability is disputed she decides to sue the other motorist for compensation for her injuries and the cost of repairing her car. Within what time limit will she have to commence her court action?
The correct answer is: 3 years from the date of the accident.
an emergency treatment fee paid for by insurers, does this affect NCD?
Payment of the fee by an insurer has no effect on their insured’s no claim discount allowance.
Stan, whose comprehensive motor policy is issued on an ‘any licensed driver’ basis allows his 15 year old son to drive while Stan is seated in the front passenger seat. His son loses control of the car and collides with a pedestrian. What is the correct position with regard to the subsequent claims for injury to the pedestrian and damage to Stan’s car?
correct answer is: Stan’s insurer will have to deal with the third party injury claim because of their RTA obligations, but will be entitled to repudiate Stan’s claim for damage to his own vehicle.
What is the main purpose of the ‘schedule’ in a private car policy?
The correct answer is: To customise the generic policy to the individual risk.
What new offence did Section 22 of the Road Safety Act 2006 introduce?
Using a hand-held mobile phone while driving.
The main reason for introducing the Police Helpline project was to address the problem of:
uninsured driving
7
Incorrect
Mark 0 out of 1
Flag question
Question text
The Motor Insurers’ Bureau is a company ‘limited by guarantee’. What does this mean?
Its members have agreed to pay any liabilities as and when the need arises.
What is a ‘hard market’?
One where rates are set to produce an underwriting profit.
Motorcycle insurance is offered by:
a.
all insurers.
b.
commercial motor insurers only.
c.
a relatively small number of insurers.
d.
the majority of insurers.
relatively small number of insurers.
For a claim for property damage to be considered under the Untraced Drivers’ Agreement, it must be reported to the police within how many days of the incident?
Five
Who runs the Police Helpline?
The Motor Insurers’ Bureau.
Where a £500 leather jacket has been stolen from a locked car that has comprehensive insurance, why is the policyholder unlikely to receive the full value?
The maximum limit of indemnity is normally much lower than this
What is usually the limit of liability under a legal expenses policy?
50,000 any one incident.
Under a breakdown policy, cover is sometimes provided for the cost of public transport for the driver and up to four persons to complete the journey. What limit of indemnity usually applies?
150
Which section of a private car policy will state that the insurer contributes to the Financial Services Compensation Scheme?
Preamble
What is the maximum cover provided for third party property damage caused by terrorism under a commercial vehicle policy?
£1.2m
When is the theft of accessories or spare parts covered under a motorcycle policy?
When the motorcycle is stolen at the same time.
If her employer allows Nadia to use her own vehicle on company business, what would a contingent liability policy cover?
The employer’s legal liability.
Marlon drove his car into the back of another car, driven by Jeremy. Marlon then rings his broker firm ABC Consultants and asks it to report his claim to his insurer, XYZ Ltd. Who is the second party in this scenario?
XYZ Ltd.
Question 2
Incorrect
Mark 0 out of 1
Flag question
Question text
Under the Equality Act 2010, the list of protected characteristics does NOT include:
Question 2 Answer
a.
political beliefs.
b.
religion.
c.
age.
Incorrect, chapter reference 3E4A
d.
race
The correct answer is: political beliefs.
Which part of the Road Traffic Act 1988 applies to accidents not only on a road but also in other places where the public has access?
Question 5 Answer
a.
S.148 – Avoidance of certain exceptions to policies or securities.
b.
S.154 – Duty to give information as to insurance or security where claim made.
Incorrect, chapter reference 3A7O
c.
S.157 – Payment for hospital treatment of traffic casualties.
d.
S.158 – Payment for emergency treatment of traffic casualties
S.157 – Payment for hospital treatment of traffic casualties.
Under the Third Parties [Rights Against Insurers] Act 2010, if an individual becomes insolvent having incurred a liability to a third party, the rights of the insured under a motor policy are transferred to the:
Question 6 Answer
a.
third party.
b.
Financial Services Compensation Scheme.
Incorrect, chapter reference 3A7K
c.
liquidator.
d.
Motor Insurers’ Bureau.
third party
The Road Traffic Act 1988 makes the exclusion of ‘hire or reward’ ineffective where the driver of a private car accepts a contribution towards the running costs of the vehicle under a car-sharing agreement. What is a condition that must be complied with?
The contribution must not exceed the running costs for that journey.
Under the Road Traffic [New Drivers] Act 1995, any person accumulating six points on their licence within what period of time of passing the driving test will automatically have their licence revoked?
Two years.
