For the new car benefit to apply, the cost of repairs must normally exceed what percentage of the manufacturer’s list price?
a. 55%.
b. 70%.
c. 60%.
d. 50%.
c. 60% (Chapter reference 2B3E)
If her employer allows Nadia to use her own vehicle on company business, what would a contingent liability policy cover?
a. Damage to Nadia’s vehicle.
b. Damage to the employer’s vehicles.
c. The employer’s legal liability.
d. The legal liability of Nadia.
c. The employer’s legal liability. (Chapter reference 2B6)
What is the maximum cover provided for third party property damage caused by terrorism under a commercial vehicle policy?
a. £1m.
b. £1.2m.
c. £5m.
d. Nil.
b. £1.2m. (Chapter reference 2B8B)
Where a £500 leather jacket has been stolen from a locked car that has comprehensive insurance, why is the policyholder unlikely to receive the full value?
a. Only items kept in a locked glove box would be covered.
b. Clothing would not be covered under the policy.
c. The maximum limit of indemnity is normally much lower than this.
d. The excess is typically higher than this.
c. The maximum limit of indemnity is normally much lower than this.(Chapter reference 2B3F)
What is the main reason for insurers creating an approved repair network?
a. To benefit from word of mouth business.
b. To delegate responsibility for the quality of repairs.
c. To control the repair spend.
d. To provide improved customer service.
c. To control the repair spend (Chapter reference 2B1)
When is the theft of accessories or spare parts covered under a motorcycle policy?
a. When the motorcycle is stolen at the same time.
b. When they are fitted to the motorcycle.
c. When they are kept in the policyholder’s garage.
d. When they are left within view of the policyholder.
a. When the motorcycle is stolen at the same time. (Chapter reference 2A3)_
For the cover under a legal expenses policy to operate, there must be a reasonable chance of recovering all or at least what percentage of the uninsured losses?
a. 60%.
b. 50%.
c. 70%.
d. 40%.
b. 50% (Chapter reference 2C)
What is usually the limit of liability under a legal expenses policy?
a. £50,000 any one year.
b. £50,000 any one incident.
c. £100,000 any one year.
d. £100,000 any one incident.
a. £50,000 any one year. (Chapter reference 2C)
When, if ever, is mechanical or electrical breakdown cover provided under a standard motor insurance policy?
a. It is always covered, unless excluded under a policy endorsement.
b. Always.
c. When an additional premium is paid.
d. Never.
d. Never. (Chapter reference 2B2)
A bus is defined as a vehicle with a seating capacity of more than:
a. eight, including the driver’s seat.
b. twelve, excluding the driver’s seat.
c. twelve, including the driver’s seat.
d. eight, excluding the driver’s seat.
a. eight, including the driver’s seat. (Chapter reference 2B4B)
The insured’s car is damaged in an accident whilst on holiday in Yorkshire. The car is taken to a garage in Yorkshire and the insured has to return home to Suffolk before the repairs have been completed. Which of these will the insured’s comprehensive motor insurance policy cover? (i) Reasonable cost of taking the car to the nearest approved repairer. (ii) Cost of the repair itself. (iii) Reasonable cost of delivering the car to her home address.
a. (i) and (iii) only.
b. (i) and (ii) only.
c. All of them.
d. (i) only.
c. All of them (Chapter reference 2B3D)
The insured’s car is stolen and is later recovered badly damaged. Which section of their third party fire and theft motor insurance policy, if any, will this damage be covered?
a. Theft.
b. Malicious damage.
c. Third party liability.
d. It won’t be covered.
a. Theft. (Chapter reference 2A3A)
The policyholder’s son (aged 26) was added to the policy three months ago when he passed his driving test. When he returns to where he parked the car he finds it has been damaged by another vehicle. The car is comprehensively insured subject to a compulsory £300 vehicle excess, a £250 young drivers excess and a £150 inexperienced drivers excess. What excess will the policyholder have to pay when he submits his claim?
a. £700.
b. £150.
c. £450.
d. £300.
c. £450 (Chapter reference 2B1B)
What does it mean when we say that a third party private car policy includes cover for ‘passenger indemnity’?
a. They are covered if they are injured whilst getting into or out of the policyholder’s vehicle.
b. They are able to drive the policyholder’s car provided they have their own valid motor insurance policy.
c. They must have their own insurance.
d. They are protected for any liability that they may have incurred.
d. They are protected for any liability that they may have incurred. (Chapter reference 2A2)
What is the maximum age of vehicle insurers usually provide the new car benefit for under a comprehensive private motor policy?
a. 3 years.
b. 1 year.
c. 2 years.
d. 5 years.
b. 1 year. (Chapter reference 2B3E)
