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| Section | Weight | Objectives |
|---|---|---|
| Law of Torts | 8% | - Principles of tort liability
|
| Formation of Insurance Contracts | 18% | - Utmost good faith, disclosure, representation
|
| Law of Contract | 12% | - Formation of contract
|
| Legislation and Regulation | 14% | - Consumer protection, data protection, FCA/PRA rules
|
| English Legal System and Basic Concepts | 10% | - Nature and sources of law
|
| Claims and Loss Settlement | 14% | - Notification, proof of loss, measure of indemnity
|
| Law of Agency | 8% | - Authority, duties, rights and liabilities
|
| Terms and Interpretation of Insurance Contracts | 16% | - Conditions, warranties, exceptions
|
1. How can an agency relationship be best described?
A) A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
B) A person has transferred his obligations under a contract to another party.
C) A person has ratified another party's action.
D) A person has the authority to act on behalf of another party.
2. In the context of an insurance claim, what does the principle of subrogation refer to?
A) The insurer's right to pursue a third party responsible for the loss
B) The insured's right to receive compensation up to the value of their loss
C) The insurer's right to reduce the claim payout
D) The insured's obligation to provide all relevant documents to the insurer
3. What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?
A) Wear and tear.
B) Brokerage.
C) An excess.
D) Loss of interest.
4. What is the role of a condition precedent in an insurance policy?
A) It is a requirement that must be met before the insurer is liable for a claim
B) It outlines exclusions from coverage
C) It defines the scope of coverage for the policyholder
D) It ensures that the insurer will cover all risks associated with a policy
5. Insurance agencies are usually created by way of
A) unilateral agreement.
B) express agreement.
C) implied agreement.
D) deed of agreement.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: B |
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