EMT Practice Test

1. Question Content...

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Question1: John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?

Question2: A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a

Question3: Harry owns a sports car valued at £1.000 and agrees to sell it to Ben for £500. Ben discusses this with his solicitor who states the contract is

Question4: From April 2019. a small company with nine employees is in dispute with its insurer and wishes to refer the matter to the Financial Ombudsman Service (FOS). The FOS is only permitted lo deal with the dispute if the insured's turnover does NOT exceed

Question5: In a chain of events, the proximate cause of a loss is always the

Question6: The Principles for Business slate that all customers should be treated

Question7: Lloyd's is known as a subscription market because

Question8: What type of risk is a widespread natural disaster?

Question9: How would an insurer's portfolio of motor claims be shown in terms of frequency and severity?

Question10: A retail customer CANNOT buy insurance directly from which type of insurer?

Question11: A survey of a car repairers reveals a spray booth exists by an unguarded paraffin space beater. Also, a day's supply of paint is kept within the building and waste is removed daily from a metal bin. What will the underwriter perceive as the main physical hazard?

Question12: How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?

Question13: If a firm is said to be risk averse, this means that it

Question14: What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?

Question15: Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the

Question16: The website of an insurer must include the company's registered name, trading address, contact details and regulator. This is in accordance with rules enforced by the

Question17: Who can place business directly with a Lloyd's underwriter?

Question18: A loss adjuster normally acts on behalf of the

Question19: When Susan applied for a new household contents insurance policy, she was obliged to disclose her extensive claims history. Such details are normally known as

Question20: An insured is temporarily disabled due to illness and unable to work. During this period, what type of insurance policy will typically pay a weekly benefit for up to two years?

Question21: An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?

Question22: A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?

Question23: Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity

Question24: What is the current rate of Insurance Premium Tax for a motor insurance policy?

Question25: What is the basis of settlement under a new for old insurance policy if a television is stolen?

Question26: An insurance company has employed an individual from a rival firm to carry out a similar job. At which stage would the regulatory requirements for retaining training and competence records first apply to the new employee, if at all?

Question27: Reinsurance is usually purchased by the

Question28: When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?

Question29: To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?

Question30: A storm blew down the wall of a limber building. The failing wall broke electrical wiring, which short-circuited and the resultant sparks caused a fire. The lire brigade used water to put out the fire and the water caused damage to the unburnt contents. What is the proximate cause of the damage to the unburnt contents?

Question31: Under the provisions of the Financial Services Act 2012. what action, if any, can the regulator take against a firm that has committed money laundering offences?

Question32: What is the legal standing of the Charioted Insurance Institute's Code of Ethics?

Question33: An owner of a building reduces its sum insured from £1,000.000 lo £500.000 to save premiums. A Tire causes
£300,000 damage to the building. If the building has a reinstatement value of £750,000 and average is applied, how much will the insured receive in settlement?