Module 4 Flashcards
What is insurable interest
A. Being intrigued by the amount an object is insured for
B. the legal right to insure arising out of a financial relationship recognised at law
C. Someone wanting to insure another person on a life insurance policy in order to gain financially if the person was to pass away
B. the legal right to insure arising out of a financial relationship recognised at law
Is the expectation of acquiring insurable interest in the future, such as a promised inheritance always enough to create insurable interest.
A. Yes
B. No
B. No
The basic right to insure property that you own arises out of which of the following?
A. Common law
B. Contract law
C. Statute law
A. Common law
Dean runs a car repair and servicing garage. He wants to take out insurance on the cars he works on. Clients leave their cars on the garage forecourt and the garage is responsible for them whilst they are under its care.
Would you consider that Dean has an insurable interest in his clients’ cars while they are with him for servicing?
A. Yes
B. No
A. Yes
Different classes of insurance require insurable interest to exist at different times. When, for example, do you think insurable interest is required under a motor insurance policy?
A. At the time of taking out the policy only
B. At the time of a loss only
C. At the time of taking out the policy and at the time of a loss
C. At the time of taking out the policy and at the time of a loss
Shelly is applying for fire insurance cover on her office which is based in a timber built portable building.
She should:
A. Disclose details of the construction to the insurer at the time of making the contract
B. Say nothing because the onus is on the insurer to discover details of the construction by carrying out an inspection of the premises
A. Disclose details of the construction to the insurer at the time of making the contract
Lucinda has been spending a lot of time with Greg recently working on his new collection of vases. He decides that she needs to be able to drive his car, which is currently insured on an ‘insured only’ driver basis. What action does Greg need to take to ensure that Lucinda is covered by his insurance?
A. Tell his motor insurer immediately that Lucinda will be an additional driver.
B. Wait until renewal before telling his insurer that Lucinda will be an additional driver
A. Tell his motor insurer immediately that Lucinda will be an additional driver.
What document is designed to obtain all of the Material facts?
A. The insurance certificate
B. The policy wording booklet
C. The proposal form
C. The proposal form
If the proposer knows about something that is material, they should disclose it, even if they are not specifically asked to do so on the form.
This statement is true of which type of insurance customer:
A. All insurance customers
B. Commercial Customers
C. Consumers
B. Commercial Customers
Which of the following would be considered to be material circumstances which a commercial customer must disclose under the Insurance Act 2015?
(2 correct answers)
A. Information which is already held by the insurer
B. Information which would be revealed by a reasonable search of information held within the insured’s own organisation
C. Confidential information acquired through a business relationship unconnected to the contract of insurance
D. Information held by others, such as the insured’s brokers
B. Information which would be revealed by a reasonable search of information held within the insured’s own organisation
D. Information held by others, such as the insured’s brokers
Steph didn’t tell her motor insurer that her car had a fuel injection engine in response to a question on the proposal form because she was unaware of its significance. Had it known this, the insurer would have offered cover on slightly different terms. The car is damaged in an accident and during the claim investigation, the non-disclosure is discovered.
Would you expect her motor insurer to be entitled to repudiate Steph’s policy, and the claim, in these circumstances?
A. Yes
B. No
B. No
