Updated: Jun 03, 2026
No. of Questions: 52 Questions & Answers with Testing Engine
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1. In what circumstances is abandonment automatic under a marine hull insurance policy?
A) The constructive total loss of the vessel.
B) The actual total loss of the vessel.
C) The insured has performed an action of abandonment.
D) The insured has sent a formal notice of abandonment.
2. For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as
A) an exception clause.
B) a continuing warranty.
C) an express term.
D) a basis of the contract clause.
3. When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
A) trespass to goods, conversion and nuisance only,
B) trespass to goods only.
C) trespass to goods, conversion, nuisance and battery.
D) trespass to goods and conversion only.
4. A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under
A) a condition precedent to liability.
B) statute.
C) a condition subsequent to liability.
D) tort.
5. For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?
A) Where the building was destroyed by an explosion.
B) Where there is underinsurance.
C) When fraud or arson by the insured is suspected.
D) Upon the request of any person(s) interested in the buildings.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C,D | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: C,D |
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