Module 11 Flashcards
Why do you think that almost everyone who drives a car takes out motor insurance?
A. Because motor accidents are so commonplace
B. Because the potential cost of claims is so high
C. Because it is compulsory to do so
C. Because it is compulsory to do so
Which type of Motor insurance policy covers damage to the insured’s own vehicle?
A. Road traffic act only
B. Third party only
C. Third party fire and theft
D. Comprehensive
D. Comprehensive
Which of the items below do you think would fall within the scope of the contents section of a household insurance policy?
(Select all that apply)
A. Curtains
B. Wallpaper
C. Pet dog
D. TV aerial
E. Boat
A. Curtains
D. TV aerial
Which of the below claims would you expect to be covered under a package travel insurance policy?
(Select all that apply)
A. Alan is forced to cancel his holiday when he is called up for jury service and he loses the deposit he has paid
B. Brenda is accidentally killed while on holiday abroad and her family want to claim compensation under her travel policy
C. Clive hires a bicycle while on holiday and collides with a pedestrian who is injured and claims compensation from Clive
D. Dave’s suitcase fails to arrive at his destination airport until 48 hours after he lands, and he claims for the cost of purchasing certain essential items in the intervening period
A. Alan is forced to cancel his holiday when he is called up for jury service and he loses the deposit he has paid
B. Brenda is accidentally killed while on holiday abroad and her family want to claim compensation under her travel policy
C. Clive hires a bicycle while on holiday and collides with a pedestrian who is injured and claims compensation from Clive
D. Dave’s suitcase fails to arrive at his destination airport until 48 hours after he lands, and he claims for the cost of purchasing certain essential items in the intervening period
Which of these options describes the benefits payable under a personal accident policy?
A. Pre-defined amounts
B. Based on the amount of the insured’s financial loss
C. Linked to mortgage or other repayment loans
A. Pre-defined amounts
What is a typical sum insured on an extended warranty policy?
A. £1,000 - £2,500
B. £2,500 - £5,000
C. £5,000 - £7,500
B. £2,500 - £5,000
Edward buys a television, together with an extended two year warranty. The television breaks down so he asks his friend Richard to repair it for him. Will the warranty pay for the cost of the repairs in these circumstances
A. Yes
B. No
B. No
Justin is a sales representative for a large biscuit manufacturer. While at a customer’s premises, he trips over a display cabinet and injures himself. He also damages his expensive Rolex watch.
If Justin claims against his employer, which, if any, of his claims would you expect to be settled by their employers’ liability insurer?
A. The claim for the watch only
B. The claim for his injuries only
C. Neither the claim for the watch or for his injuries
D. Both the claim for the watch and for his injuries
C. Neither the claim for the watch or for his injuries
An employee of Rustfree Steel plc drops some hot metal filings onto the clothes of a visitor to the works. The visitor makes a claim against Rustfree for injury and damage to his clothing.
How will the claim be dealt with?
A. The injury claim will be dealt with by Rustfree’s employers’ liability insurer and the clothing damage claim will be dealt with by their public liability insurer
B. Both the injury claim and the clothing damage claim will be dealt with by Rustfree’s public liability insurer
C. Both the injury claim and the clothing damage claim will be dealt with by Rustfree’s employers’ liability insurer
B. Both the injury claim and the clothing damage claim will be dealt with by Rustfree’s public liability insurer
When XYZ Ltd found out about their goods being faulty, they recalled them and sent out replacements to their customers free of charge. Who bears the cost of this action?
A. Their product liability insurer
B. XYZ Ltd
B. XYZ Ltd
Penny, a healthcare insurance broker, confirms cover for her client William. Unfortunately, she forgets to arrange the cover and when William needs hospital treatment he is unable to claim on a healthcare policy.
William subsequently sues Penny for the cost of his treatment and she claims an indemnity under her Reliable Accident PI policy.
Would you expect the policy to indemnify Penny in these circumstances?
A. Yes
B. No
A. Yes
Jack is an unscrupulous investment adviser who dishonestly persuades several clients to invest in a scheme owned by a friend of his, which he knows is being run solely for the owner’s benefit. The company folds with massive losses and Jack’s clients make a claim against him for their investment losses.
Would you expect Jack’s PI policy to indemnify him in these circumstances?
A. Yes
B. No
B. No
A welder overheats some machinery that he is working on and it catches fire. The fire quickly spreads to the surrounding premises, causing significant damage.
What, if anything would you expect the fire damage peril to cover?
A. Nothing because the damage was caused by an excluded peril
B. The subsequent fire damage to the surrounding premises
C. The damage to the machinery being worked on and the subsequent damage to the surrounding premises
B. The subsequent fire damage to the surrounding premises
Which of these requirements normally applies before a claim can be paid under a commercial theft policy?
A. The theft must occur while the insured premises is closed for business
B. The theft must occur while the insured premises is open for business
C. The theft must involve forcible and violent entry to or exit from the insured premises
D. A period of 30 days must elapse following the loss, in case the stolen property is recovered
C. The theft must involve forcible and violent entry to or exit from the insured premises
Which of the following claims would you expect to be covered under a standard glass policy?
(Select all that apply)
A. Accidental breakage of glass in a display showcase
B. The cost of re-lettering broken shopfront window glass
C. The cost of repairing stone chips in glass
D. Accidental damage to window frames
E. Explosion damage to glass in a shop window
A. Accidental breakage of glass in a display showcase
B. The cost of re-lettering broken shopfront window glass
D. Accidental damage to window frames
