Page 15 - CFPA-CII-Module W01-Examen blanc N°2-Qestions avec réponses

69. Insurers wish to replace a television which has been damaged irreparably. The insured
refuses their offer of a replacement through insurers’ own discounted sources and demands
cash. Insurers usually:

a) Pay the insured the amount they want in full, without excess
b) Pay the insured the amount they would have paid the retailer
c) Give the insured an exact replacement t v without discussions
d) Cancel the policy because they suspect the insured of fraud

70. A claim is made under a products liability policy. Typically settlement will be by:

a) Replacement of the item
b) Repair
c) Reinstatement
d) Payment of compensation

71. Insurers are dealing with a claim following a serious fire at a farm. When dealing with the
livestock and produce. The basis of indemnity, for livestock and produce is:

a) Cost plus expenses
b) Local market price
c) Special unit pricing
d) Trade press figures

72. In property insurance, the value of the claim is calculated:

a) At inception of the policy
b) On payment of the premium
c) On receipt of a current valuation
d) At the time and place of the loss

73. Under an Agreed Value policy, Mark insures a classic car for $150,000. Six months after
cover was incepted the vehicle is stolen and written off. The value of the car is then placed at
$140,000. Mark’s claim is paid by insurers at:

a) $140,000
b) $150,000
c) $130,500
d) $140,500

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