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Last Updated: May 29, 2026
No. of Questions: 52 Questions & Answers with Testing Engine
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1. At what stage is insurable interest required for a marine cargo insurance policy?
A) At the time of the loss only.
B) Throughout the duration of the contract.
C) At both inception of the policy and at the time of the loss.
D) At inception of the policy only.
2. 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) a person holding a dominant position over Liz.
B) Liz's husband.
C) Liz's independent financial adviser.
D) a person holding a senior position at Liz's bank.
3. 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) Upon the request of any person(s) interested in the buildings.
B) Where the building was destroyed by an explosion.
C) When fraud or arson by the insured is suspected.
D) Where there is underinsurance.
4. 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 insurer only.
B) It is shared between the insurer and the insured.
C) The State
D) The insured only.
5. For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?
A) A merger between two major insurance companies.
B) The inadvertent non-cancellation of a policy when a new policy is taken out.
C) An overlap in cover between two different types of insurance policy.
D) A deliberate attempt to obtain the proceeds of two policies.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: A,C | Question # 4 Answer: D | Question # 5 Answer: C,D |
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