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| Section | Objectives |
|---|---|
| Topic 1: Indemnity and Measurement of Loss | - Application of indemnity
|
| Topic 2: Law of Agency and Insurance | - Agency relationships
|
| Topic 3: Formation of Insurance Contracts | - Insurance contract principles
|
| Topic 4: Insurance Claims | - Claims process and legal principles
|
| Topic 5: Nature and Sources of English Law and Natural Legal Persons | - Nature and sources of English law
|
| Topic 6: Law of Torts | - Principles of tort law
|
| Topic 7: Insurance Contract Terms and Vitiating Factors | - Policy terms and validity
|
| Topic 8: Law of Contract | - Contract formation and operation
|
| Topic 9: Subrogation and Contribution | - Recovery and sharing of losses
|
1. In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
A) through fear for the safety of another person involved in an accident which he witnessed.
B) as a result of stress or harassment at work.
C) as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
D) through fear for his own safety in an accident.
2. When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
A) trespass to goods and conversion only.
B) trespass to goods only.
C) trespass to goods, conversion and nuisance only,
D) trespass to goods, conversion, nuisance and battery.
3. Ambiguous terms in a household insurance contract are generally construed against the
A) policyholder due to the noscitur a sociis rule.
B) policyholder due to the literal rule.
C) insurer due to the contra proferentem rule.
D) insurer due to the ejusdem generis rule.
4. Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
A) £10,000,000
B) £7,500,000
C) £9,000,000
D) £5,000,000
5. Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?
A) The insured only.
B) It is shared between the insurer and the insured.
C) The State
D) The insurer only.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: A |
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