Page 17 - CFPA-CII-Module W01-Examen blanc N°2-Qestions avec réponses

79. Because of a subrogation Condition in the policy insurers can:

a) Pursue subrogation rights before payment of a claim has been made
b Pursue their rights only once they have paid a claim
c) Claim more than they have paid their insured
d) Encourage their client to claim from the third party as well as themselves

80. Two people jointly own a house. The rebuilding cost of the property is $300,000. When they
bought the property, one person purchased buildings cover for $200,000 and the second for
$150,000. Both policies are in their joint names. Following water damage:

a) Neither policy contributes as they are in different names
b) Both policies contribute their rateable proportion using the Sum Insured method
c) The first person’s policy pays as the sum insured is greater
d) Due to the sums insured, independent liability is used to calculate contribution

81. Contribution supports the principle of :

a) Proximate Cause
b) Utmost Good Faith
c) Indemnity
d) Insurable interest

82. Two insurance policies meet the criteria to pay a claim for theft of a watch, but both policies
have non-contribution clauses. The effect of this is:

a) Neither policy pays anything
b) Only one policy pays
c) Both policies contribute
d) The policy with the higher sum insured pays

83. A lady’s engagement ring is adequately insured under her household policy in the specified “all
risks” section. She goes on holiday, taking travel insurance with her, which provides cover for
personal belongings. The ring slips off whilst she is swimming. The claim is met by the:

a) Household policy alone, as the ring is more specifically insured under this cover
b) Household and travel policies, each contribute to the claim
c) Travel policy alone, as the household policy excludes accidental loss
d) Neither pays, as they do not cover the same perils

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