WorksheetsIF1 Chapter 8 Quiz
Total questions: 8
Worksheet time: 8mins
Contribution will only apply if six criteria are met. Which is NOT one of these?
Common subject matter
Common insurable interest
Common peril
Common policy conditions
An insured property is covered by two fire policies subject to identical terms and conditions. A claim is made for fire damage to the property that will cost £40,000 to repair. Policy A has a sum insured of £120,000 and policy B of £60,000. If there is no underinsurance, under the principle of contribution, how much of the claim can policy B expect to pay?
£20,000
£20,000
£13,333
£40,000
Nancy has had a claim settled on her insurance policy. If her insurer has no rights of subrogation, this is most likely to be:
liability insurance
personal accident insurance
warranty insurance
motor insurance
This insurance principle allows insurers to recover payment from a third party responsible for a loss on a policy. What is it known as?
Contribution
Proximate cause
Indemnity
Subrogation
Maxine has contents insurance which includes 'all risks' worldwide cover. She also has travel insurance that covers her belongings. If she has a claim that is subject to a contribution condition, this is most likely because she has:
had her camera stolen
required medical assistance
claimed the reimbursement of holiday costs due to cancellation
been repatriated home due to sickness
In settling an insurance claim, contribution will occur where:
a pro rata payment is made by the insurer.
there is a dispute and the insured is asked to make a payment.
there is underinsurance and the insured is asked to make up an underpayment of premium.
there are two or more insurers liable for the same risk.
Why does an insurer typically include a contribution clause within a policy wording?
To ensure any claim is only paid where the policyholder's premium payments are up to date.
To restrict its liability to a share of the loss where there is more than one insurer.
It enables the insurer to reduce the amount of claim paid in the event of underinsurance.
It enables the insurer to require the policyholder to pay a proportion of the claim.
Under common law, tort is the duty of everyone to:
act in a reasonable way towards others.
share information when requested.
act within the law.
protect themselves.
