Page 13 - CFPA-CII-Module W01-Examen blanc N°2-Qestions avec réponses

59. Insurers must ask clear questions under the Consumer Insurance (Disclosure and
Representations) Act 2012. A typical question might be

a) The method of payment for the policy
b) Details of all previous policies held
c) Whether the property is let or sub-let
d) Details of previous owners

60. The proximate cause of a loss is usually described as being the:
a) Underlying cause
b) Dominant cause
c) Indirect link
d) Intervention

61. A shopkeeper has a policy of insurance covering fire only. While the shop is closed, a fire
breaks out and the Fire Brigade cause a lot of damage to the stock by extinguishment water. Is
that damage covered?

a) No, because the policy covers fire only
b) No, because water damage is not the dominant cause
c) Yes, because all damage followed from the fire
d) Yes, because a fire policy also covers water damage

62. Insurers look at policy wordings to decide if the cause of an accident is insured. What else
may they check when reviewing an insured’s claim form?

a) Proximate cause
b) Instalment interest
c) Bank details
d) Broker’s interest

63. Due to previous large claims, a standard commercial policy is issued specifically excluding
damage due directly or indirectly to Escape of Water. Overnight a tank in the roof bursts and
water reaches some electrical wiring, causing a Fire. Is the fire damage covered?

a) Yes, because fire is covered under a standard commercial policy
b) No, because the damage was caused by excluded Escape of Water
c) Yes, because Fire was a new cause of damage
d) No, because the fire was too remote

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