Question 1

Which of the following is a characteristic of a contract of insurance?

Options :

A : It is always a contract of adhesion

B : It requires both parties to meet in person

C : It involves a promise of a return on investment

D : It must be written in a formal language

Answer: A

Question 2

What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?

Options :

A : 35% for personal injury cases and 25% for employment tribunal cases.

B : 25% for personal injury cases and 35% for employment tribunal cases.

C : 35% for both cases.

D : 50% for both cases.

Answer: B

Question 3

At what stage is insurable interest required for a marine cargo insurance policy?

Options :

A : At the time of the loss only.

B : Throughout the duration of the contract.

C : At inception of the policy only.

D : At both inception of the policy and at the time of the loss.

Answer: A

Question 4

A claimant may possibly recover money transferred under an illegal contract when

Options :

A : the illegality makes the contract voidable rather than void.

B : both parties to the contract are equal in wrongdoing.

C : the contract is against public policy but not substantive law.

D : the legal portion of the contract can be severed from the illega portion.

Answer: B

Question 5

What is the role of a condition precedent in an insurance policy?

Options :

A : It defines the scope of coverage for the policyholder

B : It is a requirement that must be met before the insurer is liable for a claim

C : It outlines exclusions from coverage

D : It ensures that the insurer will cover all risks associated with a policy

Answer: B

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