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NEW QUESTION 35
What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?
- A. Vicarious liability.
- B. Insurable interest.
- C. Risk indemnity.
- D. Delegated authority.
Answer: B
NEW QUESTION 36
A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?
- A. Cancel the policies from inception for non-payment.
- B. Offer a discounted premium payment to the policyholders.
- C. Write to the liquidator to register the debt.
- D. Apply for a second payment from the policyholders.
Answer: C
NEW QUESTION 37
What is the principal reason for which a proposer is asked by the insurer whether his car will be driven by anyone else?
- A. To enable a loading to be applied.
- B. To establish whether insurable interest exists.
- C. To enable a discount to be applied.
- D. It is a material circumstance.
Answer: D
NEW QUESTION 38
What is the current rate of Insurance Premium Tax for a motor insurance policy?
- A. 10%
- B. 9.5%
- C. 20%
- D. 12%
Answer: D
NEW QUESTION 39
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