The principle of subrogation prevents a policyholder from profiting from

• A.assigning abandonment rights to the insurer.
• B.retaining salvaged property.
• C.submitting a full claim recovery under more than one insurance policy.
• D.claiming under both his insurance policy and against any negligent third party.

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John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

• A.£15,000
• B.£6,000
• C.£3,000
• D.£5,000

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For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?

• A.It is not treated as a separate legal entity.
• B.It is answerable to its shareholders or members.
• C.It is an organisation with a separate legal existence to its membership.
• D.It is a legal person representing one official position.

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In terms of private motor insurance, a renewal offer can be accepted

• A.by any third party.
• B.only by the proposer personally.
• C.only by written communication.
• D.by the proposer acting in reliance of the offer.

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A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to

• A.settle the claim and cancel the insurance policy from inception.
• B.settle the claim and recover its outlay from the insured.
• C.only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
• D.avoid the claim automatically due to the breach of the policy condition.

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