Test Questions - Set 1 Flashcards
The Marine Insurance act 1906 is an example of:
A) a codifying act
D) delegated legislation
C) international legislation
D) retrospective act
A - codifying act
One of the requirements for the rule in Ryland V Fletcher to operate, is that there must be:
A) a defamatory statement
B) fault or negligence by the defendant
C) a negligent misstatement
D) a non-natural use of land by defendant
D - a non natural use of land by defendant
For which tort is the claimant never required to prove that he has suffered a loss or damage?
A) Negligence
B) Nuisance
C) Slander
D) Tress pass to land
D - Tress pass to land
With regard to formation of a contract, consideration must always be a:
A) benefit to the person receiving it or a detriment to the person giving it
B) detriment to the person receiving it or benefit to the person giving it
C) benefit to both the person giving it and the person receiving it
D) detriment to both the person giving it and the person receiving it
A - benefit to the person receiving it or a detriment to the person giving it
Adam had a contract with a specialist storage company to store valuable paintings, but damp storage conditions resulted in damage to the paintings. Although Adam’s contract did not expressly state the storage requirements had to be suitable, he has successfully sued the storage company on the basis that the contract terms were implied:
A) by custom
B) by EU regulation
C) in fact
D) in law
C - in fact
Whilst Tim was on holiday, unknown to him his agent made a contract on his behalf. Tim is happy to ratify the contact but he does want to change a minor term. The service under the contact are scheduled to be carried out next week. What is the legal position regarding ratification of the contract?
A) Tim cannot ratify the contract as it was made without his knowledge
B) Tim cannot ratify the contract excluding the minor term as the whole contract must be ratified
C) Tim can ratify the contract and change the term as it is only a minor term
D) Tim can ratify the contract and change the minor term if this is done in reasonable time
B - Tim cannot ratify the contract excluding the minor term as the whole contract must be ratified
A company is at the proposal date for property and business interruption insurance. Material facts that require disclosure at this stage include:
A) both moral hazards and physical
B) moral hazards only
C) physical hazards only
D) only physical and moral hazards that have occurred in last 12 months
A - both moral hazards and physical
A clause in a company’s professional liability policy enables the insurer to avoid paying for any losses where insured admits responsibility for the loss. This type of class is:
A) a condition precedent to contract
B) a condition precedent to liability
C) an express warranty
D) an implied warranty
B - a condition precedent to liability
Ben has been involved in a motor cycle accident. Under section 151 of the Road Traffic Act 1988, he has the right to make a direct claim against the insurer of the negligent driver, Sally if:
A) is a minor and has no contractual capacity
B) has an unsatisfied court judgement against Sally
C) has already had a claim against the Motor Insurers’ Bureau rejected
D) was wearing a seatbelt at the time of the accident and no contributory negligence applies
B - has an unsatisfied court judgement against Sally
If an insurance claim is disputed and causation is an issue, what approach will a court take when looking to identify the proximate cause of the loss?
A) it will accept the decision of the jury as guided on points of law by the judge
B) it will follow decisions made by international courts
C) it will rely on the common understanding of causation by a normal person
D) it will required proof of causation by scientific and/ technical terms
C - it will rely on the common understanding of causation by a normal person
English law, an element of statutory control over the wording of consumer insurance policies imposed by the:
A) Consumer Insurance (Disclosure & Representations) Act 2012
B) Consumer Protection Act 1987
C) Consumer Rights Act 2015
D) Unfair Contract Terms Act 1977
C - Consumer Rights Act 2015
Harry owns a vintage car which he insurers on an agreed value basis.
An expert valuation was accepted at inception. When the car was subsequently written off, why did Harry receive less than indemnity?
A) the loss adjuster appointed by the insurer subsequently disputed the experts valuation
B) an equivalent replacement was abailable at a lower price
C) the market value of the car had decreased
D) the market value of the car had increased
D - The market value of the car had increased
When Fred’s Yacht ran aground on rocks, but was NOT totally destroyed, he abandoned his rights to the yacht to his insurer but did NOT serve formal notice of abandonment on the insurer. If Fred submits a claim, the insurer is entitled to classify it as:
A) an actual total loss
B) a constructive loss
C) a partial loss
D) salvage
C - a partial loss
Following the case of Lister V Romford Ice and Cold Storage Ltd (1957), insurers generally agree to:
A) give up their subrogation rights against workers who negligently injure their fellow employees in the course of employment
B) pursue the subrogation rights against directors on the grounds of vicarious liability
C) use the dependant liability method for the calculation of contribution
D) waive their subrogation rights between subsidiary and associated companies of an insured
A - give up their subrogation rights against workers who negligently injure their fellow employees in the course of employment
Tina has an insurance policy which contains a contribution condition known as an escape clause. She takes out a second policy with another insurer, but despite the cover under the two policies overlapping. The original policy is NOT avoided use if the escape clause. This is because:
A) both policies have an escape clause so they cancel each other out
B) statue law prohibits the use of escape clauses
C) Tina has notified both insurers of the double insurance
D) Tina has obtained consent of her insurers
D -Tina has obtained consent of her insurers
