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NEW QUESTION 43
Barbara owns a factory employing 20 people. What insurance is she required to hold by law?

• A. Employers' liability insurance.
• B. Products liability insurance.
• C. Public liability insurance.
• D. Professional indemnity insurance.

Answer: A

NEW QUESTION 44
An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?

• A. Reinsurance.
• B. Dual insurance.
• C. Self-insurance.
• D. Coinsurance.

Answer: D

NEW QUESTION 45
John and his wife arrange a household contents insurance policy in joint names with insurer A for a sum insured of £10,000. His wife arranges a second policy on the same basis with insurer B for a sum insured of
£20,000. Both policies have identical terms and conditions. What is insurer A's liability if a valid claim of
£3,000 is subsequently made?

• A. £1,500
• B. £1,000
• C. £3,000
• D. £2,000

Answer: B

NEW QUESTION 46
What is the basis of settlement under a new for old insurance policy if a television is stolen?

• A. The replacement cost in full.
• B. The original cost in full.
• C. The replacement cost, less wear and tear.
• D. The original cost, less wear and tear.

Answer: C

NEW QUESTION 47
......

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