FACE-TO-FACE TRAINING
THE CHARTERED INSURANCE INSTITUTE
Introduction to Personal Lines
MOTOR INSURANCE
TRUE/FALSE
Answer true or false to the statements below and indicate which of the general policy conditions would apply in each case.
Statement.- The policyholder (Ernest) can report a possible claim whenever convenient to him.
3. Ernest must send notice of any motor-related prosecution to the insurer immediately.
4. Ernest’s insurer could sue a negligent third party who had damaged Ernest’s car on Ernest’s behalf
5. The insurer would have to settle Ernest’s claim before it could pursue a case against a third party.
6. Ernest cancels his policy he has to return his certificate of insurance before he can get a return of premium.
7. Ernest insurer can cancel his policy with immediate effect if it has tried to contact him by phone but been unable to do so.
- Ernest does not have to let his insurer examine his car if he cannot arrange a convenient time.
- Ernest has two policies which cover the personal effects in his car damaged in an accident. Each policy will pay out only a proportion of the full value, but in total Ernest will receive the full value.
11. Ernest is right to think that his decision not to replace his tyres when they became illegal is nothing to do with his insurer.
12. If Ernest does not agree with the amount that he is offered in connection with a claim, it will go to arbitration.
13. Ernest pays his premiums monthly and is convinced that cover will cease immediately if he misses a payment. / True
True
True
True
True
True
True
True
True
True
True
True
True
True / False
False
False
False
False
False
False
False
False
False
False
False
False
False / Condition
MOTOR INSURANCE
TRUE/FALSE - ANSWERS
Answer true or false to the statements below and indicate which of the general policy conditions would apply in each case.
Statement.1. The policyholder (Ernest) can report a possible claim whenever convenient to him.
2. It is okay for Ernest to admit to a third party and the police that an accident is all his fault, as he cannot remember what actually happened.
3. Ernest must send notice of any motor-related prosecution to the insurer immediately.
4. Ernest’s insurer could sue a negligent third party who had damaged Ernest’s car on Ernest’s behalf
5. The insurer would have to settle Ernest’s claim before it could pursue a case against a third party.
6. Ernest cancels his policy he has to return his certificate of insurance before he can get a return of premium.
7. Ernest insurer can cancel his policy with immediate effect if it has tried to contact him by phone but been unable to do so.
8. Ernest does not have to let his insurer examine his car if he cannot arrange a convenient time.
9. Ernest has two policies which cover the personal effects in his car damaged in an accident. Each policy will pay out only a proportion of the full value, but in total Ernest will receive the full value.
10. The insurer is right to repudiate a claim where Ernest’s briefcase was stolen from the back seat of his car, because Ernest left the car unlocked while he went shopping.
11. Ernest is right to think that his decision not to replace his tyres when they became illegal is nothing to do with his insurer.
12. If Ernest does not agree with the amount that he is offered in connection with a claim, it will go to arbitration.
13. Ernest pays his premiums monthly and is convinced that cover will cease immediately if he misses a payment. / True
True
True
True
True
True
True
True
True
True
True
True
True
True / False
False
False
False
False
False
False
False
False
False
False
False
False
False / Condition
Notification
Control of claims
Notification
Subrogation
Subrogation
Cancellation
Cancellation
Maintenance and condition
Contribution
Maintenance and condition
Maintenance and condition
Arbitration
Monthly payments
The Chartered Insurance Institute/C2007International Insurance and Reinsurance / 1