A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?

• A.Reject the claim for breach of warranty.
• B.Avoid the policy ab initio.
• C.Make an ex-gratia payment.
• D.Pay the claim in full.

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For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as

• A.an express term.
• B.an exception clause.
• C.a basis of the contract clause.
• D.a continuing warranty.

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For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?

• A.Apply any terms it would have applied if the misrepresentation had not taken place.
• B.Avoid the contract, refuse all claims and keep the premium.
• C.Reject the claim, but maintain the policy.
• D.Reduce the claim amount in proportion to the premium it would have charged.

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What is the most common for of corporation?

• A.Corporation sole.
• B.Chartered corporation.
• C.Statutory corporation.
• D.Registered corporation.

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The proximate cause of a loss is best described as the

• A.most remote cause of the loss.
• B.first peril to cause the loss.
• C.most dominant cause of the loss.
• D.final peril to cause the loss.

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