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NEW QUESTION 27
A house slatls to have subsidence problems due to the negligence of a cable-laying company. The owner of the house claims under his household buildings insurance policy. Which principle allows the insurer to recover from the cable-laying company?
- A. Assignment.
- B. Salvage.
- C. Subrogation.
- D. Contribution.
Answer: C
NEW QUESTION 28
A loss adjuster normally acts on behalf of the
- A. insurer.
- B. Financial Services Compensation Scheme.
- C. insured.
- D. Financial Ombudsman Service.
Answer: A
NEW QUESTION 29
In a chain of events, the proximate cause of a loss is always the
- A. only event contributing towards the loss.
- B. dominant event leading to the loss.
- C. only event which is not excluded by the terms of the policy.
- D. last event before the loss occurs.
Answer: B
NEW QUESTION 30
Which principle of insurance prevents a member of the public from taking out an insurance policy on the life of a celebrity in the hope of receiving a windfall on the celebrity’s death?
- A. Indemnity.
- B. Good faith.
- C. Insurable interest.
- D. Proximate cause.
Answer: C
NEW QUESTION 31
Sunita suffers a loss and makes a claim under her household contents insurance policy. When must insurable interest exist for her claim to be valid?
- A. At policy inception only.
- B. At the time of the proposal.
- C. At the time of the loss only.
- D. At policy inception and at the time of the loss.
Answer: D
NEW QUESTION 32
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