M05 Insurance Law - MC Questions

M05 Insurance Law - M/C Questions & Answers Questions with Complete Solutions (Latest 2025) Which would not be seen as an example of composite insurance?

• - Contractors & Sub-Contractors
• - Lesser & Lessee
• - Mortgagor & Mortgagee
• - Co-Owners - Correct Answers ✅4 - Co-Owners

In the general law of contract which has the more serious consequence?

• - Breach of Warranty
• - Breach of implied warranties
• - Breach of Condition
• - Breach of a collateral condition - Correct Answers ✅3 -

Breach of Condition The insured's failure to observe a 'condition precedent to liability' will normally give the insurers the right to?

• - Avoid liability for a particular loss only
• - Avoid the contract ab initio only
• - Avoid the contract and claim for damages
• - Avoid the contract ab initio and keep any premiums paid -

Correct Answers ✅1 - Avoid liability for a particular loss only 1 / 4

M05 Insurance Law - M/C Questions & Answers Questions with Complete Solutions (Latest 2025) Which of the following is not a duty of an agent?

• - Act in good faith
• - Indemnity
• - Act with obedience
• - Personal performance - Correct Answers ✅2 - Indemnity

Which of the following are types of assignment? (more than one answer applies)

• - Common Law
• - Statutory
• - Customary
• - Equitable - Correct Answers ✅2 - Statutory
• - Customary

A statement which is false as the person making it did not take sufficient care to check it was correct is called?

• - Innocent misrepresentation
• - Fraudulent misrepresentation
• - Accidental misrepresentation
• - Negligent misrepresentation - Correct Answers ✅4 -

Negligent misrepresentation 2 / 4

M05 Insurance Law - M/C Questions & Answers Questions with Complete Solutions (Latest 2025) In the event of a fraudulent misrepresentation by the insured, which of the following is not an option to the insurer?

• - Keep the premium
• - Refuse a claim but allow the policy to stand
• - Avoid the contract ab initio
• - Waive their rights and affirm the contract - Correct

Answers ✅2 - Refuse a claim but allow the policy to stand Which tort is actionable per se?

• - Trespass to goods
• - Trespass to a person
• - Nuisance
• - Trespass to land - Correct Answers ✅3 - Nuisance

Unliquidated damages are?

• - Fixed in advance
• - Set out by a judge prior to a case
• - Not fixed in advance
• - Set out by a legal representative prior to a case - Correct

Answers ✅2 - Set out by a judge prior to a case An act by a defendant which directly causes the claimant to fear an attack on their person is? 3 / 4

M05 Insurance Law - M/C Questions & Answers Questions with Complete Solutions (Latest 2025)

• - Battery
• - Robbery
• - Assault
• - Conversion - Correct Answers ✅3 - Assault

The Hotel Proprietors Act 1956 limits strict liability for any one guest to?

1 - £100

2 - £200

3 - £150

• - £50 - Correct Answers ✅4 - £50

Which tort is a statutory authority NOT a defence?

• - Negligence
• -Trespass
• - Nuisance
• - Defamation - Correct Answers ✅1 - Negligence

Contract terms may be implied by various methods, which is NOT one of these?

• - In law
• - By custom
• / 4