Test Questions - Set 2

Question 1

What two branches of civil law have most relevance in the context of insurance?

A) contract and property
B) contract and torts
C) property and trusts
D) torts and trusts

Answer 1

A - contract and property

Question 2

Minor civil cases relating to personal injury claims are usually dealt with by the:

A) County Courts
B) Court of Appeal
C) Divisional Court of the High Court
D) Magistrates Court

Answer 2

A - County Courts

Question 3

What legal personality best describes a person who is subject to a bankruptcy order?

A) a corporation sole
B) a jurisdic person
C) a member of an unincorporated association
D) a natural legal person

Answer 3

D - a natural legal person

Question 4

Which is a characteristic of a primal procedure?

A) a criminal court case is a contest between prosecution and the defence
B) criminal proceeding follow the continental European inquisitorial system
C) guilt of a crime must be proven on the “balance of probabilities”
D) the legal process for criminal case is always trial by judge and jury

Answer 4

A - a criminal court case is a contest between prosecution and the defence

Question 5

In negligence, what standard of care would be required of a newly qualified electrician?

A) standard for electrical professional only
B) standard for electrical professional but with allowance for level of experience
C) standard of a prudent man
D) standard for a reasonable mane

Answer 5

A - standard for electrical professional only

Question 6

What common law remedy for the tort of nuisance?

A) Exemplary damages
B) General damages
C) an Injunction
D) Restitution

Answer 6

B - General damages

Question 7

A gardener who was entitled to £2,00 under a contract with a private client assigned her rights under the contract to one of her plant suppliers. To be legally valid as a statutory assignment, this assignment must be:

A) absolute
B) conditional
C) contract under seal
D) supported by consideration

Answer 7

A - absolute

Question 8

After what period of time does an action for a breach of simple contract become statute- barred if the action is not in respect of personal injuries?

A) 1 year
B) 3 years
C) 6 years
D) 12 years

Answer 8

C - 6 years

Question 9

An agent may be able to protect his right to renumeration and indemnity by:

A) accepting commission from both parties to a transaction
B) accounting for the principal’s money separately
C) exercising lien on the principal’s property
D) signing a negotiable instrument on behalf of principal

Answer 9

C - exercising Lein on the principals property

Question 10

Mia wishes to effect a life insurance policy on her husbands life and on her adult sons life. What is the maximum sum insured, if any, legally allowable under each policy?

A) an unlimited amount in respect of both policies
B) an unlimited amount in respect of Mia’s husbandry and a nominal amount in respect of her son
C) an unlimited amount in repspect of Mia’s husband and she is not legally allowed to insure the life of her son
D) Mia is not legally allowed to insure the life of either her husband or son

Answer 10

C - an unlimited amount in repspect of Mia’s husband and she is not legally allowed to insure the life of her son

Question 11

The risk manager of a large construction company forgot to notify his property insurer of the contracts his company were accepting would involve hazardous work. In the event of a claim arising from this one contract, the insurer has the statutory legal remedy of:

A) applying any different terms relating to hazardous work as if the insurance policy had contained these
B) apply any different terms relating to hazardous work with effect from the date of the claim
C) terminating the insurance policy from inception with no refund of premium
D) terminating the insurance policy from the date of starting the hazardous contract

Answer 11

A - applying any different terms relating to hazardous work as if the insurance policy had contained these

Question 12

A policy holder makes a claim for damage to his motor vehicle. After investigation, the insurer discovers the vehicle was being used by the policy holder in a criminal act. In these circumstances, the insurance policy is:

A) valid and the claim will be paid
B) valid but the claim will be rejected
C) void
D) voidable at the option of the insurer

Answer 12

C - void

Question 13

Special rules apply to employers liability insurance in respect of:

A) applicability of basis of contract clauses
B) avoidance of liability for breach of condition or warranty
C) effect of a lack of insurance interest
D) range of remedies following misrepresentation

Answer 13

B - avoidance of liability for breach of condition or warranty

Question 14

In what types of contracts, if any, is the use of basis of contract clauses legally permitted?

A) in consumer insurance policies only
B) in non-consumer insurance policies only
C) in both consumer and non-consumer insurance policies
D) in neither consumer nor non-consumer insurance policies

Answer 14

D - in neither consumer nor non-consumer insurance policies

Question 15

What remedy is available to an insurer where a commercial policyholder has breached a collateral condition concerning a minor matter?

A) Avoid policy ab into
B) apply terms retrospectively
C) claim for damages
D) repudiate any further claim

Answer 15

C - claim for damages

Question 16

Under the Consumer Rights Act 2015, a contract term in an insurance policy will be considered unfair to the policy holder if:

A) causes a significant imbalance in the parties rights and obligations to the detriment of the policyholder
B) defines a particularly narrow scope of cover in relation to the premium paid by the policyholder
C) is a standard term that the policyholder does not have the opportunity to individually negotiate
D) is ambiguous and on interpretation of the term is detrimental to the policy holder

Answer 16

A - causes a significant imbalance in the parties rights and obligations to the detriment of the policyholder

Question 17

A broker, acting for a commercial policyholder, is reviewing a policy wording drawn up by an insurer. The broker proposes an additional clause for insertion into the policy, which the insurer agrees to incorporate. Which party to the contract will the clause be constructed against in the event of ambiguity?

A) the broker and the insurer equally
B) the broker and the policyholder equally
C) the insurer only
D) the policyholder only

Answer 17

D - the policyholder only

Question 18

The basis of the burden of proof that a named insured peril was the proximate case of the loss falls upon:

A) policyholder to prove the imbalance of probabilities
B) policyholder to prove beyond reasonable doubt
C) insurer to prove the imbalance of probabilities
D) insurer to prove beyond reasonable doubt

Answer 18

A - policyholder to prove the imbalance of probabilities

Question 19

What is the effect of a clause in an insurance contract that excludes losses directly or indirectly caused by flooding?

A) flooding cover cannot be provided by a buy back policy
B) flooding is an uninsured peril in relation to concurrent causes
C) flooding must be the proximate cause of the loss in order for the exclusion to operate
D) flooding need only be a remote cause of the loss for the exclusion to operate

Answer 19

D - flooding need only be a remote cause of the loss for the exclusion to operate

Question 20

A persuasive precedent may be set by:
choose more than 1

A) a decision made in lower courts
B) a decision made by the Judicial Committee of the Privy Council
C) a local custom
D) obita dicta of senior judges in a high level decision
E) the ratio decidendi of a previous case

Answer 20

A - a decision made in lower courts
B - a decision made by the Judicial Committee of the Privy Council
D - obita dicta of senior judges in a high level decision

Question 21

What roles are typically carried out by solicitors in England and Wales:
choose more than 1

A) drawing up contracts for the sale or purchase of property
B) providing a specialist advocacy service in the High Court
C) giving opinions on complex or niche areas of law
D) offering professional advice on the matters of family law
E) representing corporate clients in the lower courts

Answer 21

A - drawing up contracts for the sale
or purchase of property
D - offering professional advice on the matters of family law
E - representing corporate clients in the lower courts

Question 22

Which torts are actual per se?
choose more than 1

A) assault
B) false imprisonment
C) negligent misstatement
D) private nuisance
E) trespass to land

Answer 22

A - assault
B - false imprisonment
E - trespass to land

Question 23

An employees liability insurance policy can be classified as a type of:
choose more than 1

A) bilateral contract
B) collateral contract
C) contract under seal
D) simple contract
E) unilateral contract

Answer 23

A - bilateral contract
D - simple contract

Question 24

What items are most commonly insured on an agreed value basis?
choose more than 1

A) antiques
B) golf clubs
C) household appliances
D) ships
E) fine art

Answer 24

A - antiques
D - ships
E - fine art

Question 25

The operation of the principle of subrogation, and the way in which any recovery from a third-party is shared between the policyholder, and the insurer, depends on:
choose more than 1

A) the amount of recovery in relation to the loss
B) the time when subrogation rights arise
C) whether the insurance covers the
D) whether there is a non-contribution clause

Answer 25

A - the amount of recovery in relation to the loss
C - whether the insurance covers the loss