Sample GEN 1A Questions. Insurance operates by paying the claims of the few from the premiums of...

Sample GEN 1ASample GEN 1A

QuestionsQuestions

Insurance operates by paying the claims of the few from Insurance operates by paying the claims of the few from the premiums of many. the premiums of many.

This is known asThis is known as : :

A actuarial ratingA actuarial rating

B indemnityB indemnity

C pooling of riskC pooling of risk

D underwritingD underwriting

Sample QuestionSample Question

AnswerAnswer

Insurance operates by paying the claims of the few from Insurance operates by paying the claims of the few from the premiums of many. the premiums of many.

This is known asThis is known as : :

A actuarial ratingA actuarial rating

B indemnityB indemnity

C pooling of riskC pooling of risk

D underwritingD underwriting

ANSWER :ANSWER : C C


An insurer is able manage high severity, low frequency risk in its An insurer is able manage high severity, low frequency risk in its property account by implementing a programme of :property account by implementing a programme of :

A loss preventionA loss prevention

B loss reductionB loss reduction

C risk retentionC risk retention

D risk transferD risk transfer

AnswerAnswer

An insurer is able manage high severity, low frequency risk in its An insurer is able manage high severity, low frequency risk in its property account by implementing a programme of :property account by implementing a programme of :

A loss preventionA loss prevention

B loss reductionB loss reduction

C risk retentionC risk retention

D risk transferD risk transfer

ANSWER :ANSWER : DD


How does the provision of insurance help the cash flow of a How does the provision of insurance help the cash flow of a business ?business ?

A It lessens the need for the business to keep cash reservesA It lessens the need for the business to keep cash reserves

B It prevents losses occurring which could interrupt the businessB It prevents losses occurring which could interrupt the business

operationoperation

C It provides for the payment of cash if the business makes aC It provides for the payment of cash if the business makes a

trading losstrading loss

D It underwrites the debts owed by the businessD It underwrites the debts owed by the business

AnswerAnswer

How does the provision of insurance help the cash flow of a How does the provision of insurance help the cash flow of a business ?business ?

A It lessens the need for the business to keep cash reservesA It lessens the need for the business to keep cash reserves

B It prevents losses occurring which could interrupt the businessB It prevents losses occurring which could interrupt the business

operationoperation

C It provides for the payment of cash if the business makes aC It provides for the payment of cash if the business makes a

trading losstrading loss

D It underwrites the debts owed by the businessD It underwrites the debts owed by the business

ANSWERANSWER :: AA


When the insured has effected two policies which cover When the insured has effected two policies which cover the same risk, this is known asthe same risk, this is known as ::

A co-insuranceA co-insurance

B dual insuranceB dual insurance

C mutual insuranceC mutual insurance

D reinsuranceD reinsurance

AnswerAnswer

When the insured has effected two policies which cover When the insured has effected two policies which cover the same risk, this is known asthe same risk, this is known as ::

A co-insuranceA co-insurance

B dual insuranceB dual insurance

C mutual insuranceC mutual insurance

D reinsuranceD reinsurance

ANSWER :ANSWER : BB


Which type of insurance policy is designed with the specific Which type of insurance policy is designed with the specific knowledge that a valid claim will occur ?knowledge that a valid claim will occur ?

A Comprehensive motor insuranceA Comprehensive motor insurance

B Household buildings insuranceB Household buildings insurance

C Professional indemnity insuranceC Professional indemnity insurance

D Whole of life insuranceD Whole of life insurance

AnswerAnswer

Which type of insurance policy is designed with the specific Which type of insurance policy is designed with the specific knowledge that a valid claim will occur ?knowledge that a valid claim will occur ?

A Comprehensive motor insuranceA Comprehensive motor insurance

B Household buildings insuranceB Household buildings insurance

C Professional indemnity insuranceC Professional indemnity insurance

D Whole of life insuranceD Whole of life insurance

ANSWER :ANSWER : DD


A direct insurance company transacts business through their A direct insurance company transacts business through their contact withcontact with ::

A Insurance brokersA Insurance brokers

B Private individualsB Private individuals

C ShareholdersC Shareholders

D Tied agentsD Tied agents

AnswerAnswer

A direct insurance company transacts business through their A direct insurance company transacts business through their contact withcontact with ::

A Insurance brokersA Insurance brokers

B Private individualsB Private individuals

C ShareholdersC Shareholders

D Tied agentsD Tied agents

ANSWERANSWER :: BB


Insurance may only be placed at Lloyd’s via a Lloyd’sInsurance may only be placed at Lloyd’s via a Lloyd’s : :

A AgentA Agent

B BrokerB Broker

C NameC Name

D SyndicateD Syndicate

AnswerAnswer

Insurance may only be placed at Lloyd’s via a Lloyd’sInsurance may only be placed at Lloyd’s via a Lloyd’s : :

A AgentA Agent

B BrokerB Broker

C NameC Name

D SyndicateD Syndicate

ANSWERANSWER :: BB


A reinsurance company will cover risks :A reinsurance company will cover risks :

A already insured by insurance companiesA already insured by insurance companies

B directly from individualsB directly from individuals

C from individuals via a brokerC from individuals via a broker

D on a co-insurance basis with an insurerD on a co-insurance basis with an insurer

AnswerAnswer

A reinsurance company will cover risks :A reinsurance company will cover risks :

A already insured by insurance companiesA already insured by insurance companies

B directly from individualsB directly from individuals

C from individuals via a brokerC from individuals via a broker

D on a co-insurance basis with an insurerD on a co-insurance basis with an insurer

ANSWERANSWER :: AA


Who has the responsibility for providing advice to customers Who has the responsibility for providing advice to customers concerning loss control and loss prevention ?concerning loss control and loss prevention ?

A An actuaryA An actuary

B A reinsurerB A reinsurer

C A risk managerC A risk manager

D An underwriterD An underwriter

AnswerAnswer

Who has the responsibility for providing advice to customers Who has the responsibility for providing advice to customers concerning loss control and loss prevention ?concerning loss control and loss prevention ?

A An actuaryA An actuary

B A reinsurerB A reinsurer

C A risk managerC A risk manager

D An underwriterD An underwriter

ANSWERANSWER :: CC


Why is the principle of utmost good faith applied to insurance contracts ?Why is the principle of utmost good faith applied to insurance contracts ?

A The proposer has more knowledge of the risk than the underwriterA The proposer has more knowledge of the risk than the underwriter

B The underwriter has more knowledge of the risk than the proposerB The underwriter has more knowledge of the risk than the proposer

C The proposer and the underwriter have equal knowledge of the riskC The proposer and the underwriter have equal knowledge of the risk

D The proposer and the underwriter need to increase their knowledge ofD The proposer and the underwriter need to increase their knowledge of

the riskthe risk

AnswerAnswer

Why is the principle of utmost good faith applied to insurance contracts ?Why is the principle of utmost good faith applied to insurance contracts ?

A The proposer has more knowledge of the risk than the underwriterA The proposer has more knowledge of the risk than the underwriter

B The underwriter has more knowledge of the risk than the proposerB The underwriter has more knowledge of the risk than the proposer

C The proposer and the underwriter have equal knowledge of the riskC The proposer and the underwriter have equal knowledge of the risk

D The proposer and the underwriter need to increase their knowledge ofD The proposer and the underwriter need to increase their knowledge of

the riskthe risk

ANSWERANSWER :: AA


Which of the following describes the ‘creating a programme’ stage of Which of the following describes the ‘creating a programme’ stage of general insurance planning?general insurance planning?

AA Establishing a snapshot of the current general insurance Establishing a snapshot of the current general insurance situationsituationBB Establishing the ideal solution to the current general Establishing the ideal solution to the current general insurance insurance situationsituationCC Developing a general insurance plan including risk control Developing a general insurance plan including risk control

measuresmeasuresDD Purchasing insurance or paying for risk control measuresPurchasing insurance or paying for risk control measures

AnswerAnswer

Which of the following describes the ‘creating a programme’ stage of Which of the following describes the ‘creating a programme’ stage of general insurance planning?general insurance planning?

AA Establishing a snapshot of the current general insurance Establishing a snapshot of the current general insurance situationsituationBB Establishing the ideal solution to the current general Establishing the ideal solution to the current general insurance situationinsurance situationCC Developing a general insurance plan including risk Developing a general insurance plan including risk control measurescontrol measuresDD Purchasing insurance or paying for risk control measuresPurchasing insurance or paying for risk control measures

ANSWER:ANSWER: CC


In the context of the insurance market cycle, which of the following In the context of the insurance market cycle, which of the following factors tends to lead towards a general increase in insurance factors tends to lead towards a general increase in insurance premiums?premiums?

AA High interest ratesHigh interest ratesBB Claims frequency reductionClaims frequency reductionCC Failure of an insurerFailure of an insurerDD Increased underwriting profitsIncreased underwriting profits

AnswerAnswer

In the context of the insurance market cycle, which of the following In the context of the insurance market cycle, which of the following factors tends to lead towards a general increase in insurance factors tends to lead towards a general increase in insurance premiums?premiums?

AA High interest ratesHigh interest ratesBB Claims frequency reductionClaims frequency reductionCC Failure of an insurerFailure of an insurerDD Increased underwriting profitsIncreased underwriting profits

ANSWER:ANSWER: CC


Which of the following does a public liability policy cover?Which of the following does a public liability policy cover?

AA Injury to employeesInjury to employeesBB Fixed benefits for accidentsFixed benefits for accidentsCC Illness arising from goods soldIllness arising from goods soldDD Injury to third parties through negligenceInjury to third parties through negligence

Answer Answer

Which of the following does a public liability policy cover?Which of the following does a public liability policy cover?

AA Injury to employeesInjury to employeesBB Fixed benefits for accidentsFixed benefits for accidentsCC Illness arising from goods soldIllness arising from goods soldDD Injury to third parties through negligenceInjury to third parties through negligence

ANSWER: ANSWER: CC


Which of the following are required by statute to have professional Which of the following are required by statute to have professional indemnity insurance in the Republic of Ireland?indemnity insurance in the Republic of Ireland?

AA ActuariesActuariesBB Chartered accountantsChartered accountantsCC Chartered surveyorsChartered surveyorsDD SolicitorsSolicitors

AnswerAnswer

Which of the following are required by statute to have professional Which of the following are required by statute to have professional indemnity insurance in the Republic of Ireland?indemnity insurance in the Republic of Ireland?

AA ActuariesActuariesBB Chartered accountantsChartered accountantsCC Chartered surveyorsChartered surveyorsDD SolicitorsSolicitors

ANSWER: ANSWER: DD


What does a revenue account show?What does a revenue account show?

AA Underwriting profit or lossUnderwriting profit or lossBB Total profit or loss during a stated periodTotal profit or loss during a stated periodCC Assets and liabilities at a point in timeAssets and liabilities at a point in timeDD Projected business forecastsProjected business forecasts

AnswerAnswer

What does a revenue account show?What does a revenue account show?

AA Underwriting profit or lossUnderwriting profit or lossBB Total profit or loss during a stated periodTotal profit or loss during a stated periodCC Assets and liabilities at a point in timeAssets and liabilities at a point in timeDD Projected business forecastsProjected business forecasts

ANSWER:ANSWER: AA


What is the correct sequence of the risk management process?What is the correct sequence of the risk management process?

AA Economic control; identification; analysisEconomic control; identification; analysisBB Analysis; identification; economic controlAnalysis; identification; economic controlCC Identification; analysis; economic controlIdentification; analysis; economic controlDD Identification; economic control; analysisIdentification; economic control; analysis

AnswerAnswer

What is the correct sequence of the risk management process?What is the correct sequence of the risk management process?

AA Economic control; identification; analysisEconomic control; identification; analysisBB Analysis; identification; economic controlAnalysis; identification; economic controlCC Identification; analysis; economic controlIdentification; analysis; economic controlDD Identification; economic control; analysisIdentification; economic control; analysis

ANSWER: ANSWER: CC


What do material facts enable a prudent underwriter to assess?What do material facts enable a prudent underwriter to assess?

AA Whether the cover being sold is the most suitable cover for the Whether the cover being sold is the most suitable cover for the proposerproposer

BB Whether the claim against a policy is valid and how much should be Whether the claim against a policy is valid and how much should be paidpaid

CC Whether a risk should be accepted and on what termsWhether a risk should be accepted and on what termsDD Whether the proximate cause of a loss is an insured perilWhether the proximate cause of a loss is an insured peril

AnswerAnswer

What do material facts enable a prudent underwriter to assess?What do material facts enable a prudent underwriter to assess?

AA Whether the cover being sold is the most suitable cover for the Whether the cover being sold is the most suitable cover for the proposerproposer

BB Whether the claim against a policy is valid and how much should be Whether the claim against a policy is valid and how much should be paidpaid

CC Whether a risk should be accepted and on what termsWhether a risk should be accepted and on what termsDD Whether the proximate cause of a loss is an insured perilWhether the proximate cause of a loss is an insured peril

ANSWER:ANSWER: CC


In a typical commercial property policy the principle of utmost good In a typical commercial property policy the principle of utmost good faith (disclosure of material facts) is modified by the:faith (disclosure of material facts) is modified by the:

AA change of risk (increase in risk of damage) clausechange of risk (increase in risk of damage) clauseBB subrogation (recovery rights) clausesubrogation (recovery rights) clauseCC contribution (dual insurance) clausecontribution (dual insurance) clauseDD business definitionbusiness definition

AnswerAnswer

In a typical commercial property policy the principle of utmost good In a typical commercial property policy the principle of utmost good faith (disclosure of material facts) is modified by the:faith (disclosure of material facts) is modified by the:

AA change of risk (increase in risk of damage) clausechange of risk (increase in risk of damage) clauseBB subrogation (recovery rights) clausesubrogation (recovery rights) clauseCC contribution (dual insurance) clausecontribution (dual insurance) clauseDD business definitionbusiness definition

ANSWER:ANSWER: AA


The proprietor of a sales shop has been insured for the past three The proprietor of a sales shop has been insured for the past three years with the same insurer. When investigating a theft claim the years with the same insurer. When investigating a theft claim the insurer discovers that the insured was convicted of theft when aged insurer discovers that the insured was convicted of theft when aged 11. What action can the insurer take?11. What action can the insurer take?

AA The insurer can avoid the policy from its inceptionThe insurer can avoid the policy from its inceptionBB The insurer must deal with the claim and ignore the The insurer must deal with the claim and ignore the convictionconvictionCC The insurer can avoid liability for the particular claim but The insurer can avoid liability for the particular claim but otherwise leave the policy in forceotherwise leave the policy in forceDD The insurer can sue the insured for damagesThe insurer can sue the insured for damages

AnswerAnswer

The proprietor of a sales shop has been insured for the past three The proprietor of a sales shop has been insured for the past three years with the same insurer. When investigating a theft claim the years with the same insurer. When investigating a theft claim the insurer discovers that the insured was convicted of theft when aged 11. insurer discovers that the insured was convicted of theft when aged 11. What action can the insurer take?What action can the insurer take?

AA The insurer can avoid the policy from its inceptionThe insurer can avoid the policy from its inceptionBB The insurer must deal with the claim and ignore the convictionThe insurer must deal with the claim and ignore the convictionCC The insurer can avoid liability for the particular claim but The insurer can avoid liability for the particular claim but otherwise leave the policy in forceotherwise leave the policy in forceDD The insurer can sue the insured for damagesThe insurer can sue the insured for damages

ANSWER: ANSWER: BB


Global Manufacturing has two policies covering the same building for Global Manufacturing has two policies covering the same building for fire and special perils. One policy is with ABC insurance for fire and special perils. One policy is with ABC insurance for €400,000; the other with XYZ Insurance for €800,000. Both are €400,000; the other with XYZ Insurance for €800,000. Both are subject to average. The total rebuilding cost is €2,400,000. What will subject to average. The total rebuilding cost is €2,400,000. What will each insurer pay if there is a fire loss of €120,000?each insurer pay if there is a fire loss of €120,000?

AA ABC pays €60,000: XYZ pays €60,000ABC pays €60,000: XYZ pays €60,000BB ABC pays €20,000: XYZ pays €40,000ABC pays €20,000: XYZ pays €40,000CC ABC pays €40,000: XYZ pays €80,000ABC pays €40,000: XYZ pays €80,000DD ABC pays €30,000: XYZ pays €30,000ABC pays €30,000: XYZ pays €30,000

AnswerAnswer

Global Manufacturing has two policies covering the same building for Global Manufacturing has two policies covering the same building for fire and special perils. One policy is with ABC insurance for fire and special perils. One policy is with ABC insurance for €400,000; the other with XYZ Insurance for €800,000. Both are €400,000; the other with XYZ Insurance for €800,000. Both are subject to average. The total rebuilding cost is €2,400,000. What will subject to average. The total rebuilding cost is €2,400,000. What will each insurer pay if there is a fire loss of €120,000?each insurer pay if there is a fire loss of €120,000?

AA ABC pays €60,000: XYZ pays €60,000ABC pays €60,000: XYZ pays €60,000BB ABC pays €20,000: XYZ pays €40,000ABC pays €20,000: XYZ pays €40,000CC ABC pays €40,000: XYZ pays €80,000ABC pays €40,000: XYZ pays €80,000DD ABC pays €30,000: XYZ pays €30,000ABC pays €30,000: XYZ pays €30,000

ANSWER:ANSWER: BB


A fire occurs in a warehouse in which stock is held on behalf of a A fire occurs in a warehouse in which stock is held on behalf of a client for a fee. The fire insurer for the client pays the claim and client for a fee. The fire insurer for the client pays the claim and acquires subrogation rights that arise from:acquires subrogation rights that arise from:

AA TortTortBB ContractContractCC StatuteStatuteDD The subject-matter of insuranceThe subject-matter of insurance

AnswerAnswer

A fire occurs in a warehouse in which stock is held on behalf of a A fire occurs in a warehouse in which stock is held on behalf of a client for a fee. The fire insurer for the client pays the claim and client for a fee. The fire insurer for the client pays the claim and acquires subrogation rights that arise from:acquires subrogation rights that arise from:

AA TortTortBB ContractContractCC StatuteStatuteDD The subject-matter of insuranceThe subject-matter of insurance

ANSWER:ANSWER: BB


Michael Clark’s car has been written off in a motorway pile up. ABC Michael Clark’s car has been written off in a motorway pile up. ABC insurance has paid him the car’s full market value. To whom does the insurance has paid him the car’s full market value. To whom does the salvage belong?salvage belong?

AA Both the insurance company and Michael Clark equallyBoth the insurance company and Michael Clark equallyBB Michael ClarkMichael ClarkCC The agent that removed the car from the motorwayThe agent that removed the car from the motorwayDD The insurance companyThe insurance company

AnswerAnswer

Michael Clark’s car has been written off in a motorway pile up. ABC Michael Clark’s car has been written off in a motorway pile up. ABC insurance has paid him the car’s full market value. To whom does the insurance has paid him the car’s full market value. To whom does the salvage belong?salvage belong?

AA Both the insurance company and Michael Clark equallyBoth the insurance company and Michael Clark equallyBB Michael ClarkMichael ClarkCC The agent that removed the car from the motorwayThe agent that removed the car from the motorwayDD The insurance companyThe insurance company

ANSWER: ANSWER: DD


To whom could a private individual go to arrange an insurance policy?To whom could a private individual go to arrange an insurance policy?

AA A captive insurance companyA captive insurance companyBB An insurance intermediaryAn insurance intermediaryCC A Lloyd’s nameA Lloyd’s nameDD A reinsurance companyA reinsurance company

AnswerAnswer

To whom could a private individual go to arrange an insurance policy?To whom could a private individual go to arrange an insurance policy?

AA A captive insurance companyA captive insurance companyBB An insurance intermediaryAn insurance intermediaryCC A Lloyd’s nameA Lloyd’s nameDD A reinsurance companyA reinsurance company

ANSWER: ANSWER: BB


What is the What is the principalprincipal service offered by an independent risk manager? service offered by an independent risk manager?

AA The provision of specialist claims handlingThe provision of specialist claims handlingBB Advice on loss control and preventionAdvice on loss control and preventionCC Negotiation for lower premium levels at renewalNegotiation for lower premium levels at renewalDD Provision of loss assessment services in the event of a claimProvision of loss assessment services in the event of a claim

AnswerAnswer

What is the What is the principalprincipal service offered by an independent risk manager? service offered by an independent risk manager?

AA The provision of specialist claims handlingThe provision of specialist claims handlingBB Advice on loss control and preventionAdvice on loss control and preventionCC Negotiation for lower premium levels at renewalNegotiation for lower premium levels at renewalDD Provision of loss assessment services in the event of a claimProvision of loss assessment services in the event of a claim

ANSWER: ANSWER: BB


In the offer and acceptance of a motor insurance contract what would In the offer and acceptance of a motor insurance contract what would be the consideration which makes the cover valid?be the consideration which makes the cover valid?

AA A cover noteA cover noteBB The certificateThe certificateCC The policyThe policyDD The premiumThe premium

AnswerAnswer

In the offer and acceptance of a motor insurance contract what would In the offer and acceptance of a motor insurance contract what would be the consideration which makes the cover valid?be the consideration which makes the cover valid?

AA A cover noteA cover noteBB The certificateThe certificateCC The policyThe policyDD The premiumThe premium

ANSWER: ANSWER: DD


Despite no emergency an agent acts outside the terms of the agency Despite no emergency an agent acts outside the terms of the agency agreement he has with his principal. The principal agrees to be agreement he has with his principal. The principal agrees to be bound by these actions in any case. This is an example of an agency bound by these actions in any case. This is an example of an agency created by: created by:

AA apparent authorityapparent authorityBB consentconsentCC necessitynecessityDD ratificationratification

Answer Answer

Despite no emergency an agent acts outside the terms of the agency Despite no emergency an agent acts outside the terms of the agency agreement he has with his principal. The principal agrees to be agreement he has with his principal. The principal agrees to be bound by these actions in any case. This is an example of an agency bound by these actions in any case. This is an example of an agency created by: created by:

AA apparent authorityapparent authorityBB consentconsentCC necessitynecessityDD ratificationratification

ANSWER: ANSWER: DD


An insurance broker recommends and arranges an insurance policy An insurance broker recommends and arranges an insurance policy for his client and collects the premium for the insurer. The broker for his client and collects the premium for the insurer. The broker subsequently advises the client on how to make a claim. At what subsequently advises the client on how to make a claim. At what point in this scenario is the insurer the broker’s principal?point in this scenario is the insurer the broker’s principal?

AA Recommendation of the policyRecommendation of the policyBB Arrangement of the policyArrangement of the policyCC Collection of the premiumCollection of the premiumDD Advising on the claimAdvising on the claim

Answer Answer

An insurance broker recommends and arranges an insurance policy An insurance broker recommends and arranges an insurance policy for his client and collects the premium for the insurer. The broker for his client and collects the premium for the insurer. The broker subsequently advises the client on how to make a claim. At what subsequently advises the client on how to make a claim. At what point in this scenario is the insurer the broker’s principal?point in this scenario is the insurer the broker’s principal?

AA Recommendation of the policyRecommendation of the policyBB Arrangement of the policyArrangement of the policyCC Collection of the premiumCollection of the premiumDD Advising on the claimAdvising on the claim

ANSWER: ANSWER: CC


Mrs Williams suffers a loss under a household policy. When must Mrs Williams suffers a loss under a household policy. When must insurable interest exist for the claim to be valid?insurable interest exist for the claim to be valid?

AA Only when she first proposes for insuranceOnly when she first proposes for insuranceBB When the policy comes into effectWhen the policy comes into effectCC At the time of loss onlyAt the time of loss onlyDD At inception and the time of the lossAt inception and the time of the loss

AnswerAnswer

Mrs Williams suffers a loss under a household policy. When must Mrs Williams suffers a loss under a household policy. When must insurable interest exist for the claim to be valid?insurable interest exist for the claim to be valid?

AA Only when she first proposes for insuranceOnly when she first proposes for insuranceBB When the policy comes into effectWhen the policy comes into effectCC At the time of loss onlyAt the time of loss onlyDD At inception and the time of the lossAt inception and the time of the loss

ANSWER: ANSWER: DD


Fire destroys an injection moulding machine insured on an indemnity Fire destroys an injection moulding machine insured on an indemnity basis. The measure of indemnity would be calculated by:basis. The measure of indemnity would be calculated by:

AA the cost of a new replacement less an amount for wear and the cost of a new replacement less an amount for wear and teartearBB the cost of new replacementthe cost of new replacementCC the original purchase pricethe original purchase priceDD the original purchase price less an amount for war and tearthe original purchase price less an amount for war and tear

Answer Answer

Fire destroys an injection moulding machine insured on an indemnity Fire destroys an injection moulding machine insured on an indemnity basis. The measure of indemnity would be calculated by:basis. The measure of indemnity would be calculated by:

AA the cost of a new replacement less an amount for wear and the cost of a new replacement less an amount for wear and teartearBB the cost of new replacementthe cost of new replacementCC the original purchase pricethe original purchase priceDD the original purchase price less an amount for war and tearthe original purchase price less an amount for war and tear

ANSWER: ANSWER: AA


Five years ago Mr O’Shea bought a table for the equivalent of €400, Five years ago Mr O’Shea bought a table for the equivalent of €400, which is now worth €200. It is badly damaged and will cost €600 to which is now worth €200. It is badly damaged and will cost €600 to repair, or €500 to replace. How much will Mr O’Shea be paid under repair, or €500 to replace. How much will Mr O’Shea be paid under his new for old policy, given that this is a valid claim and no excess his new for old policy, given that this is a valid claim and no excess applies?applies?

AA €200€200BB €400€400CC €500€500DD €600€600

Answer Answer

Five years ago Mr O’Shea bought a table for the equivalent of €400, Five years ago Mr O’Shea bought a table for the equivalent of €400, which is now worth €200. It is badly damaged and will cost €600 to which is now worth €200. It is badly damaged and will cost €600 to repair, or €500 to replace. How much will Mr O’Shea be paid under repair, or €500 to replace. How much will Mr O’Shea be paid under his new for old policy, given that this is a valid claim and no excess his new for old policy, given that this is a valid claim and no excess applies?applies?

AA €200€200BB €400€400CC €500€500DD €600€600

ANSWER: ANSWER: CC

Date post:	22-Dec-2015
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