In what circumstances is abandonment automatic under a marine hull insurance policy?

• A.The insured has performed an action of abandonment.
• B.The actual total loss of the vessel.
• C.The insured has sent a formal notice of abandonment.
• D.The constructive total loss of the vessel.

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As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because

• A.the misrepresentation was fraudulent.
• B.the premium was paid by monthly installments.
• C.the misrepresentation was innocent.
• D.no claim had been submitted or paid.

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Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?

• A.£10,000,000
• B.£9,000,000
• C.£5,000,000
• D.£7,500,000

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In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer

• A.signs and submits the completed proposal form to the insurer.
• B.assigns the contract to a third party.
• C.dies and his estate submits a claim to the insurer.
• D.forms the contract with the insurer.

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Why may an insurer insert a continuing warranty into an insurance policy?

• A.To encourage good risk management by the insured throughout the policy period.
• B.To maintain the annual aggregate limit of liability throughout the policy period.
• C.To enable an insurer to charge an additional premium if the warranty is continually breached.
• D.To ensure that underinsurance is avoided at all times.

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