Random Questions

Question 1

Shortly after renewal Raman makes a claim on her household policy for a theft of a Sky box and television. On checking its records, her insurer identifies that the premium has not yet been paid. How will this affect its handling of the claim?

Answer 1

It will request payment before dealing with the claim.

Question 2

How do high net worth home insurance policies differ from a standard home insurance policy?

Answer 2

They are individually underwritten

Question 3

What is the main reason why insurers ask for the date, cause and circumstances of a loss on a claim form?

Answer 3

To allow insurers to take an initial view on whether the claim is covered.

Question 4

A water tank leaks and the escaping water causes damage to the ceiling, fitted units and carpet in the kitchen below. What would NOT be covered under a household buildings and contents policy?

a. Repairing the water tank.

b. Drying out the carpet.

c. Replacing the kitchen units.

d. Redecorating the ceiling.

Answer 4

Repairing the water tank.

Question 5

To which parts of the UK does English law generally apply?

Answer 5

England, Wales and Northern Ireland only.

Question 6

The sum insured for unspecified items under the personal possessions extension to a household policy should represent the:
a. maximum value of all items that will be taken outside the home at any one time.

b. total value of all items worth less than the single article limit that are regularly taken outside the home.

c. highest value of any single item that is regularly taken outside the home.

d. maximum value of all items worth less than the single article limit that will be away from the home at any one time.

Answer 6

The Maximum value of all items worth less than the single article limit that will be away from the home at any one time.

Question 7

Which section of cover is usually an optional extra that can be added to a stand-alone business policy?
a. Business money.

b. Public liability.

c. Goods in transit.

d. Portable business equipment outside the home

Answer 7

Goods in transit

Question 8

When arranging travel insurance, a policyholder was careless in not disclosing a medical condition to the insurer. Had the insurer known about this, it would have charged more for the policy. In the event of a claim linked to the condition, what remedy is available to the insurer under the terms of the Consumer Insurance [Disclosure and Representations] Act 2012?

Answer 8

To pay a proportionate amount of any claim only.

Question 9

When does the cover apply for accidental damage to contents during household removal?
a. When contents are put into temporary storage for up to 21 days.

b. Only for valuable items that are individually worth less than £1,500.

c. Where the insured has packed all items for removal personally.

d. Where professional removal contractors are used.

Answer 9

d. Where professional removal contractors are used.

Question 10

The baggage, money and personal effects section of a travel policy would typically cover:

a. clothing.

b. contact lenses.

c. a mouth retainer.

d. hearing aids.

Answer 10

a. clothing.

Question 11

Once a claim has been notified, it will initially be investigated by a:

Answer 11

claims handler

Question 12

A household buildings policy for a shared house would typically cover losses in relation to which peril?
a. Malicious damage caused by a tenant

b. Riot caused by the tenants.

c. Explosion.

d. Theft in which no force or deception was used

Answer 12

Explosion.

Question 13

The cost of travel insurance is greatest for trips to:
a. Bermuda.

b. Croatia.

c. Gran Canaria.

d. New Zealand.

Answer 13

a. Bermuda

Question 14

Under the Rehabilitation of Offenders Act 1974 [as amended by the Legal Aid, Sentencing and Punishment of Offenders Act 2012], custodial sentences of over what period of time are never spent?

Answer 14

Four Years

Question 15

A household policy typically requires the insured to notify their insurer of a loss:

Answer 15

as soon as reasonably possible.

Question 16

Where cover under a caravan policy is arranged on an indemnity basis, the sum insured should be based on the:

Answer 16

market value of the caravan.

Question 17

Where increased cost of working cover is included in a home business policy, this will usually provide cover for up to:

Answer 17

ground heave.

Question 18

Which settlement option is usually used for third party property damage claims?

Answer 18

£10,000

Question 19

What is the purpose of Flood Re?

Answer 19

It allows insurers to pass the flood risk element from those households deemed at high risk of flooding to the fund.

Question 20

Anita Taylor lets part of her house to two friends. Which of the perils under her household buildings insurance will be subject to an additional restriction in cover due to this arrangement?

a. Impact.

b. Escape of water.

c. Riot and malicious damage.

d. Accidental damage to sanitary ware and fixed glass.

Answer 20

Riot and malicious damage.

Question 21

Mrs Jones’s household contents policy extends to provide cover in respect of unspecified personal possessions taken outside the home. She loses her contact lenses, while holidaying in Europe. What is the correct position with regard to a claim?

a. The loss is covered provided that the duration of the holiday was less than 30 days.

b. The loss is covered by the policy.

c. The loss is only covered if the lenses are not more specifically insured elsewhere.

d. The loss is not covered because contact lenses are specifically excluded from this policy extension.

Answer 21

The loss is not covered because contact lenses are specifically excluded from this policy extension.

Question 22

Which of these is the correct summation of the legal principle of negligence?

a. The wrongful interference with someone else’s enjoyment of their property or land.

b. The failure to take reasonable care.

c. Unlawfully encroaching on another person or their land or property.

d. The failure to do one’s civil duty.

Answer 22

b. The failure to take reasonable care.

Question 23

Which of these is a particular feature of ‘strict liability’?

a. It only arises where there is a non-natural usage of land.

b. For it to arise, death or injury must be caused.

c. Something must ‘escape’ before it can arise.

d. It can arise even where there is no fault or negligence.

Answer 23

d. It can arise even where there is no fault or negligence.

Question 24

For how long must the pet owner normally be hospitalised before they can make a claim for reimbursement of kennel boarding fees under the emergency boarding (hospitalisation of owner) section of a pet insurance policy?

a. A minimum of 14 days.

b. More than 4 days.

c. At least 10 days.

d. 28 days or more in any period of insurance.

Answer 24

more than 4 days

Question 25

Karen has received a letter from her insurer telling her that her household insurance will shortly fall due for renewal. Karen pays her premium monthly, by Direct Debit. Which of the following applies?

a. Karen must write confirming her acceptance of the renewal terms before the insurer can collect the first monthly premium after renewal.

b. Karen must set up a new direct debit mandate within 2 weeks following the renewal date or the policy will expire.

c. Karen must set up a new direct debit mandate before the renewal date or the policy will expire.

d. Karen’s policy will be automatically renewed and the new premium collected unless she cancels the mandate.

Answer 25

Karen’s policy will be automatically renewed and the new premium collected unless she cancels the mandate.

Question 26

The ‘valuables’ single article limit under a household contents policy is most commonly stated as:

a. no more than £1,500 or up to 5% of the contents sum insured.

b. 25% of the overall valuables limit.

c. 1/3 of the total contents sum insured.

Answer 26

a. No more than £1,500 or up to 5%

Question 27

Your cousin, who lives with you, has been found in the shed smashing up your lawnmower and garden tools. What is the correct position regarding a claim for the damage caused under your household contents insurance?

a. It is not covered because the cousin did not break in to the shed to cause the damage.

b. It is not covered because the cousin is a member of your household.

c. It is covered because the cousin is considered as part of your ‘household’.

d. It is covered because the policy covers malicious damage and vandalism.

Answer 27

b. It is not covered because the cousin is a member of your household.

Question 28

The legal liability cover provided under the buildings section of a household insurance policy excludes?

a. Liability arising under the Defective Premises Act 1972.

b. Liability for claimant’s costs and expenses.

c. Liability for injury to a member of the insured’s family who permanently resides with them.

d. Liability for property damage.

Answer 28

c. Liability for injury to a member of the insured’s family who permanently resides with them.

Question 29

Suzy’s horse developed an illness and had to be put down. What, if anything, is her insurer likely to pay under the equine insurance policy covering her horse?

a. The original purchase price of the horse.

b. The current market value of the horse up to the sum insured.

c. Nothing, death resulting from illness is a specific policy exclusion.

Answer 29

b. The current market value of the horse up to the sum insured.

Question 30

Peter is taking his dog for a walk when he drops the end of the lead and his dog runs off. The trailing lead trips up a pedestrian who is taken to hospital with a broken leg. The pedestrian makes a claim for injury and damage to personal property and Peter seeks an indemnity under the third party liability section of his pet insurance covering the dog. What is the correct position?

a. The property damage claim will be covered but the injury claim will not.

b. The claim will not be covered because the injury was caused by the lead not the dog.

c. The claim for injury and property damage will be covered under the third party liability section of the policy.

Answer 30

c. The claim for injury and property damage will be covered under the third party liability section of the policy.

Question 31

Carol’s travel insurance policy extends to provide cover for delayed baggage. Her suitcase is temporarily lost at the airport and she waits six hours before it is eventually found. During this time she spends £30 on a meal and some phone calls. What is the correct position with regard to a claim under her policy?

a. The insurance covers the cost of buying essential items and does not come into force until the delay has lasted at least twelve hours, so no claim can be made.

b. The policy will reimburse the actual amount that Carol spent during the time she was waiting, so she will be paid £30.

c. The policy pays a fixed benefit of £25 for each 12 hours’ delay, so Carol should receive £25 compensation.

Answer 31

a. The insurance covers the cost of buying essential items and does not come into force until the delay has lasted at least twelve hours, so no claim can be made.

Question 32

Will a pet’s illness be excluded from cover the following renewal year on a standard pet policy?

Answer 32

Yes

Question 33

Harry changes from one household buildings insurer to another and six months later he makes a claim for subsidence damage to the insured property. Under the ABI Domestic Subsidence Agreement how should the claim be handled?

a. The new insurer should handle the claim and recover half the cost from the previous insurer.

b. The previous insurer should deal with the claim without calling for any contribution from the new insurer.

c.. The previous insurer should deal with the claim and recover half the cost from the new insurer.