Module 2- Basic Principles Mock test

Which is an example of an own damage loss?

• Theft of a neighbor's car

• Repair costs for your own damaged car

• Fire damage to a building

Which type of loss is not recognised by insurers?

• Liability loss

• Consequential loss

• Sentimental loss

Which type of loss happens due to being found legally responsible?

• Liability loss

• Consequential loss

• Own damage loss

Which loss refers to secondary costs after an insured event?

• Liability loss

• Own damage loss

• Consequential loss

A write-off occurs when…

• Repairs would cost more than the value of the vehicle

• The vehicle is stolen

• The vehicle is repaired

6. The RAF is funded through…

• Insurance premiums

• Fuel levies

• Government grants

What is 'replacement cost'?

• Current cost of replacing property with a similar item

• Original purchase price

• Depreciated value

The average clause applies when…

• There is underinsurance

• There is overinsurance

• The sum insured is correct

Which policy covers personal items carried outside the home?

• All risks policy

• Homeowners policy

• Motor policy

Loss ratio is…

• Claims paid + Premiums collected

• Claims paid ÷ Premiums collected

• Premiums collected ÷ Claims paid