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1. Under a coinsurance arrangement, who is ultimately responsible for payment of an agreed claim?

A) The lead insurer.
B) Each coinsurer for its own proportion only.
C) The intermediary.
D) Each coinsurer for its own proportion, but also a share of any proportion unpaid due to the default of another coinsurer.

2. Which principle of insurance prevents a member of the public from taking out an insurance policy on the life of a celebrity in the hope of receiving a windfall on the celebrity's death?

A) Indemnity.
B) Good faith.
C) Insurable interest.
D) Proximate cause.

3. Julie has cancelled her trip to tlaly as she has broken her leg. Which type of insurance policy is specifically designed to compensate Julie for any cancellation charges she has incurred?

A) An income protection insurance policy.
B) A travel insurance policy.
C) A money insurance policy.
D) A personal accident and sickness insurance policy.

4. In a chain of events, the proximate cause of a loss is always the

A) dominant event leading to the loss.
B) last event before the loss occurs.
C) only event which is not excluded by the terms of the policy.
D) only event contributing towards the loss.

5. If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from

A) reinsuring the risk.
B) increasing the premium.
C) disclosing details to a third party.
D) pursuing subrogation rights.

問題與答案：