[2021] Use Valid E05 Exam - Actual Exam Question & Answer
Test Engine to Practice E05 Test Questions
NEW QUESTION 18
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. as a result of stress or harassment at work.
- B. through fear for the safety of another person involved in an accident which he witnessed.
- 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.
Answer: D
NEW QUESTION 19
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. The insurer at all times.
- B. No one as Tim is not a party to the insurance contract.
- C. Both the insurer and Paul at different times.
- D. Paul as it is a consumer contract.
Answer: A
NEW QUESTION 20
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. reasonable person.
- B. diligent broker.
- C. prudent underwriter.
- D. honest proposer.
Answer: C
NEW QUESTION 21
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Make an ex-gratia payment.
- B. Avoid the policy ab initio.
- C. Reject the claim for breach of warranty.
- D. Pay the claim in full.
Answer: D
NEW QUESTION 22
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. Liz's husband.
- B. a person holding a dominant position over Liz.
- C. a person holding a senior position at Liz's bank.
- D. Liz's independent financial adviser.
Answer: B
NEW QUESTION 23
A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
- A. If the policyholder exaggerates the value of the claim.
- B. If the tumble dryer is covered by extended warranty insurance.
- C. If there is a breach of a warranty requiring the burglar alarm to be set.
- D. If there is a subrogation action against the manufacturer of the tumble dryer.
Answer: A
NEW QUESTION 24
The branch of law particularly relevant when handling negligence claims is
- A. civil law.
- B. administrative.
- C. constitutional law.
- D. public law.
Answer: A
NEW QUESTION 25
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. International treaties.
- B. Official law reports.
- C. Legislation.
- D. Case law.
Answer: C,D
NEW QUESTION 26
A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?
- A. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
- B. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
- C. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
- D. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
Answer: A
NEW QUESTION 27
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 express term.
- B. a basis of the contract clause.
- C. a continuing warranty.
- D. an exception clause.
Answer: A,B
NEW QUESTION 28
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 15 years.
- B. 9 years.
- C. 3 years.
- D. 6 years.
Answer: C
NEW QUESTION 29
In terms of private motor insurance, a renewal offer can be accepted
- A. only by written communication.
- B. by the proposer acting in reliance of the offer.
- C. by any third party.
- D. only by the proposer personally.
Answer: B
NEW QUESTION 30
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 ratified another party's action.
- C. A person has the authority to act on behalf of another party.
- D. A person has transferred his obligations under a contract to another party.
Answer: C
NEW QUESTION 31
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. On submission of a claim.
- B. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- C. Where there is a variation in the insured risk.
- D. From the date of a breach of warranty.
Answer: C
NEW QUESTION 32
The proximate cause of a loss is best described as the
- A. final peril to cause the loss.
- B. first peril to cause the loss.
- C. most dominant cause of the loss.
- D. most remote cause of the loss.
Answer: C
NEW QUESTION 33
......
E05 Actual Questions Answers PDF 100% Cover Real Exam Questions: https://www.testvalid.com/E05-exam-collection.html
E05 Real Exam Questions Test Engine Dumps Training With 52 Questions: https://drive.google.com/open?id=1EBgUX33KR37BRmKy5T1BnkNyPPertiV9