IF1 Chapter 8

1. Insurance cover for pedal cycles:

• is for theft only

• is for accidental loss or damage.

•  is for third party damage or injury only.

• includes mopeds with a CC of 25 or under.

2. The Hijacking and Mugging extension to a travel policy includes cover for:

• inpatient treatment.

• loss of passport.

• damage to personal effects.

• a daily cash benefit.

3. In relation to household insurances, 'New for old' is another name for what type of cover?

• Indemnity.

• all risks

• comprehensive

• reinstatement

4. In respect of a household buildings policy, full accidental damage cover is generally:

• not available.

• only available if the policyholder also has contents cover on the same policy

• available as an optional extension.

• included as standard.

 What limit of liability usually applies to third party only private car policies in respect of damage to third party property?

• 5 million

• 20 million

• 10 million

• 1 million

6. Sean has had a motor accident causing damage to his own car and injuring a pedestrian. Sean was at fault. His policy provides cover for the damage to his own car as well as his liabilities to the third party involved. What type of policy does Sean have?

• Third Party, Fire and Theft.

• Comprehensive.

• Road Traffic Act

• Third Party Only

7. Why are very few road traffic act only policies sold today by insurers?

• Third party policies now cost less than road traffic act only policies.

•  Only drivers under 23 years of age are eligible for road traffic act only policies.

• The difference in cover between road traffic act policies and third party policies is marginal.

• New legislation has meant that, in many cases, the cover under a road traffic act policy is insufficient.

8. Mike has a household contents policy which has been extended to include money and credit cards. He makes a claim under this section of cover. This would be rejected by insurers if:

• the claim was for accidental loss of money.

• the loss did not exceed £200.

• he did not report the loss to the police until three days later.

• the loss happened outside of his home.

What is the USUAL 'per claim' limit of indemnity which applies to the legal liability cover provided by a household insurance policy?

• 5 million

• 2 million

• 3 million

• 1 million

10. Extended Warranty and Breakdown Insurance usually provides for free repairs for electrical or mechanical defects for up to what MAXIMUM number of years?

• 5 years

• 4 years

• 2 years

• 3 years