Best M05 Exam Dumps for the Preparation of Latest M05 Exam Questions [Q53-Q76]

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Best M05 Exam Dumps for the Preparation of Latest M05 Exam Questions

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NEW QUESTION 53
How do an insurer’s subrogation rights differ, if at all, between a theft policy and a personal accident policy?

Subrogation rights only apply under a theft policy.

Subrogation rights do not apply under either policy.

Subrogation rights only apply under a personal accident policy.

Subrogation rights apply under both policies.

NEW QUESTION 54
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

an express term.

a continuing warranty.

an exception clause.

a basis of the contract clause.

NEW QUESTION 55
As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because

the misrepresentation was fraudulent.

the premium was paid by monthly installments.

no claim had been submitted or paid.

the misrepresentation was innocent.

NEW QUESTION 56
What are the main objectives of the principle of insurable interest?

To reduce moral hazard and to discourage profiteering.

To reduce physical hazard and to discourage profiteering.

To reduce physical hazard and to discourage wagering.

To reduce moral hazard and to discourage wagering.

NEW QUESTION 57
The test of the materiality of facts in an insurance contract is defined according to the opinion of a

prudent underwriter.

diligent broker.

reasonable person.

honest proposer.

NEW QUESTION 58
Which of the following is true regarding the “principle of subrogation”?

It allows the insured to be compensated twice for the same loss

It allows the insurer to pursue third parties responsible for the loss

It means the insurer is entitled to the premium even if the claim is not paid

It prevents the insurer from recovering any costs from a third party

NEW QUESTION 59
Which of the following is a typical remedy for an insurer when the insured breaches a warranty?

The insurer must continue to provide coverage, but with an increased premium

The insurer may cancel the contract or refuse to pay a claim

The insurer can sue the insured for breach of contract

The insurer is obligated to reduce the payout amount based on the breach

NEW QUESTION 60
Which of the following is considered an exclusion in a standard property insurance policy?

Loss caused by a fire

Theft by a third party

Loss due to war or civil unrest

Damage caused by accidental breakage

NEW QUESTION 61
A breach of warranty under the general law of contract legally entitles an injured party to

claim damages.

avoid the contract from the date of the breach.

obtain specific performance.

avoid the contract ab initio.

NEW QUESTION 62
Which of the following is true regarding the insurable interest in life insurance?

The policyholder must have a financial interest in the life of the person insured

The policyholder must have a financial interest in the property of the person insured

Insurable interest is required only at the time the policy is issued

Insurable interest is not required for life insurance policies

NEW QUESTION 63
A proposer for household insurance completes and submits an online application. When the insurer’s website responds with a quotation based on the application, the quotation is most likely to be legally regarded as:

an invitation to treat

an offer

an acceptance of an offer

a counter offer

NEW QUESTION 64
In tort law, when, if at all. is a minor legally responsible for his acts?

He is only responsible if a criminal ad has also been committed.

He is never responsible.

He is usually fully responsible.

He is only responsible if he is over 14 years of age.

NEW QUESTION 65
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?

No one as Tim is not a party to the insurance contract.

Both the insurer and Paul at different times.

The insurer at all times.

Paul as it is a consumer contract.

NEW QUESTION 66
What is the principal reason for which a proposer is asked by the insurer whether his car will be driven by anyone else?

To enable a loading to be applied.

To establish whether insurable interest exists.

To enable a discount to be applied.

It is a material circumstance.

NEW QUESTION 67
A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?

A suspensive condition.

A condition precedent to the contract.

A condition precedent to liability.

A collateral condition.

NEW QUESTION 68
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?

Lien.

Coinsurance.

Power of Attorney.

Trust.

NEW QUESTION 69
The Chancery Division is a division of the:

Crown Court.

High Court.

Magistrates Court.

County Court.

NEW QUESTION 70
A claimant may possibly recover money transferred under an illegal contract when

the illegality makes the contract voidable rather than void.

both parties to the contract are equal in wrongdoing.

the contract is against public policy but not substantive law.

the legal portion of the contract can be severed from the illega portion.

NEW QUESTION 71
John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?

Immediately, irrespective of prognosis.

He does not need to disclose this.

Immediately, but only if the diagnosis is terminal.

At the date of the next premium payment.

NEW QUESTION 72
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?

It is an organisation with a separate legal existence to its membership.

It is not treated as a separate legal entity.

It is answerable to its shareholders or members.

It is a legal person representing one official position.

NEW QUESTION 73
In which of the following cases can the insurer void an insurance contract?

If the policyholder does not pay the premium

If the insurer fails to provide a certificate of insurance

If the policyholder has misrepresented a material fact at the time of underwriting

If the insurer cannot locate the policyholder

NEW QUESTION 74
What is the role of an insurance broker in a typical insurance transaction?

To act as a middleman between the insurer and the insured, negotiating the terms of the policy

To provide legal advice and act as a lawyer for the insured

To ensure the insurer complies with all regulatory requirements

To pay insurance premiums on behalf of the insured

NEW QUESTION 75
In the context of an insurance claim, what does the principle of subrogation refer to?

The insurer’s right to reduce the claim payout

The insured’s obligation to provide all relevant documents to the insurer

The insurer’s right to pursue a third party responsible for the loss

The insured’s right to receive compensation up to the value of their loss

NEW QUESTION 76
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?

£5,000,000

£7,500,000

£9,000,000

£10,000,000