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GEN 2B Sample GEN 2B Sample Questions Questions

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Page 1: GEN 2B Sample Questions. Sample Multi-Choice Questions

GEN 2B Sample GEN 2B Sample

QuestionsQuestions

Page 2: GEN 2B Sample Questions. Sample Multi-Choice Questions

Sample Multi-ChoiceSample Multi-ChoiceQuestions Questions

Page 3: GEN 2B Sample Questions. Sample Multi-Choice Questions

Sample QuestionSample Question The Golden rule, when used to interpret an Act of the Oireachtas The Golden rule, when used to interpret an Act of the Oireachtas states:states:

A that words should be construed in their ordinary sense A that words should be construed in their ordinary sense B that where words literally interpreted would produce an absurd B that where words literally interpreted would produce an absurd result, a different interpretation that avoids this may be used result, a different interpretation that avoids this may be used C that the purpose of the Act should be determined by considering C that the purpose of the Act should be determined by considering the abuse it was intended to remedythe abuse it was intended to remedyD that general terms occurring after a list will be interpreted as D that general terms occurring after a list will be interpreted as being of the same kind as the listed itemsbeing of the same kind as the listed items

Page 4: GEN 2B Sample Questions. Sample Multi-Choice Questions

AnswerAnswer The Golden rule, when used to interpret an Act of the Oireachtas The Golden rule, when used to interpret an Act of the Oireachtas states:states:

A that words should be construed in their ordinary sense A that words should be construed in their ordinary sense B that where words literally interpreted would produce an absurd B that where words literally interpreted would produce an absurd result, a different interpretation that avoids this may be used result, a different interpretation that avoids this may be used C that the purpose of the Act should be determined by considering C that the purpose of the Act should be determined by considering the abuse it was intended to remedythe abuse it was intended to remedyD that general terms occurring after a list will be interpreted as D that general terms occurring after a list will be interpreted as being of the same kind as the listed itemsbeing of the same kind as the listed items

Answer: BAnswer: B

Page 5: GEN 2B Sample Questions. Sample Multi-Choice Questions

Sample QuestionSample Question

Which of the following are features of a partnership that Which of the following are features of a partnership that distinguish it from a limited company?distinguish it from a limited company?

A A partnership has no corporate existence; details of finances are A A partnership has no corporate existence; details of finances are confidential; there is no legal limitation on the maximum number confidential; there is no legal limitation on the maximum number of partners of partners B A partnership has a separate legal status from the individual B A partnership has a separate legal status from the individual partners; details of finances are confidential; there is a legal partners; details of finances are confidential; there is a legal limitation on the maximum number of partnerslimitation on the maximum number of partnersC Partners generally have unlimited liability; details of finances are C Partners generally have unlimited liability; details of finances are confidential; there is a legal limitation on the maximum number of confidential; there is a legal limitation on the maximum number of partnerspartnersD All partners must agree to the appointment of a new partner; D All partners must agree to the appointment of a new partner; details of finances are publicly available; there is no legal details of finances are publicly available; there is no legal limitation on the maximum number of partnerslimitation on the maximum number of partners

Page 6: GEN 2B Sample Questions. Sample Multi-Choice Questions

AnswerAnswer

Which of the following are features of a partnership that Which of the following are features of a partnership that distinguish it from a limited company?distinguish it from a limited company?A A partnership has no corporate existence; details of finances are A A partnership has no corporate existence; details of finances are confidential; there is no legal limitation on the maximum number confidential; there is no legal limitation on the maximum number of partners of partners B A partnership has a separate legal status from the individual B A partnership has a separate legal status from the individual partners; details of finances are confidential; there is a legal partners; details of finances are confidential; there is a legal limitation on the maximum number of partnerslimitation on the maximum number of partnersC Partners generally have unlimited liability; details of finances are C Partners generally have unlimited liability; details of finances are confidential; there is a legal limitation on the maximum number of confidential; there is a legal limitation on the maximum number of partnerspartnersD All partners must agree to the appointment of a new partner; D All partners must agree to the appointment of a new partner; details of finances are publicly available; there is no legal details of finances are publicly available; there is no legal limitation on the maximum number of partnerslimitation on the maximum number of partnersAnswer: CAnswer: C

Page 7: GEN 2B Sample Questions. Sample Multi-Choice Questions

In determining whether damages are recoverable for nervous shock, In determining whether damages are recoverable for nervous shock, which of the following statements is true regarding the tests given in the which of the following statements is true regarding the tests given in the judgement in judgement in Kelly v Hennessey [1995]Kelly v Hennessey [1995]??

AA If harm results from perception of the aftermath of injury the plaintiff If harm results from perception of the aftermath of injury the plaintiff must have a close personal relationship with the victim must have a close personal relationship with the victim

BB The plaintiff must have suffered illness consequent upon the event, The plaintiff must have suffered illness consequent upon the event, though the type of illness is not specified though the type of illness is not specified

CC The test of reasonable foreseeability applies to personal injury but not to The test of reasonable foreseeability applies to personal injury but not to nervous shocknervous shock

DD If there is no connection between a witness to a serious accident and If there is no connection between a witness to a serious accident and the victim, there can be no successful cause of action the victim, there can be no successful cause of action

Sample QuestionSample Question

Page 8: GEN 2B Sample Questions. Sample Multi-Choice Questions

In determining whether damages are recoverable for nervous shock, which of the In determining whether damages are recoverable for nervous shock, which of the following statements is true regarding the tests given in the judgement in following statements is true regarding the tests given in the judgement in Kelly v Kelly v Hennessey [1995]Hennessey [1995]??

AA If harm results from perception of the aftermath of injury the plaintiff must have a If harm results from perception of the aftermath of injury the plaintiff must have a close personal relationship with the victim close personal relationship with the victim

BB The plaintiff must have suffered illness consequent upon the event, though the The plaintiff must have suffered illness consequent upon the event, though the type of illness is not specified type of illness is not specified

CC The test of reasonable foreseeability applies to personal injury but not to nervous The test of reasonable foreseeability applies to personal injury but not to nervous shockshock

DD If there is no connection between a witness to a serious accident and the victim, If there is no connection between a witness to a serious accident and the victim, there can be no successful cause of action there can be no successful cause of action

Answer: AAnswer: A

AnswerAnswer

Page 9: GEN 2B Sample Questions. Sample Multi-Choice Questions

When determining whether interference is sufficiently unreasonable When determining whether interference is sufficiently unreasonable to amount to nuisance, which of the following statements is true?to amount to nuisance, which of the following statements is true?

AA It is irrelevant how long the alleged nuisance has existed It is irrelevant how long the alleged nuisance has existed BB No action for nuisance can arise if an individual puts themselves in a No action for nuisance can arise if an individual puts themselves in a

situation where the nuisance already exists situation where the nuisance already exists CC Malice on the part of the alleged tortfeasor will not alter the fact of Malice on the part of the alleged tortfeasor will not alter the fact of

whether an activity is regarded as a nuisancewhether an activity is regarded as a nuisanceDD The alleged nuisance must be continuous or repetitive and not a ‘one The alleged nuisance must be continuous or repetitive and not a ‘one

off’ off’

Sample QuestionSample Question

Page 10: GEN 2B Sample Questions. Sample Multi-Choice Questions

When determining whether interference is sufficiently unreasonable to When determining whether interference is sufficiently unreasonable to amount to nuisance, which of the following statements is true?amount to nuisance, which of the following statements is true?

AA It is irrelevant how long the alleged nuisance has existed It is irrelevant how long the alleged nuisance has existed BB No action for nuisance can arise if an individual puts themselves in a No action for nuisance can arise if an individual puts themselves in a

situation where the nuisance already exists situation where the nuisance already exists CC Malice on the part of the alleged tortfeasor will not alter the fact of Malice on the part of the alleged tortfeasor will not alter the fact of

whether an activity is regarded as a nuisancewhether an activity is regarded as a nuisanceDD The alleged nuisance must be continuous or repetitive and not a ‘one off’ The alleged nuisance must be continuous or repetitive and not a ‘one off’

Answer: DAnswer: D

AnswerAnswer

Page 11: GEN 2B Sample Questions. Sample Multi-Choice Questions

In relation to the duration of an offer in the form of a quotation provided In relation to the duration of an offer in the form of a quotation provided by an insurer to individuals, which of the following statements is true?by an insurer to individuals, which of the following statements is true?

AA A time limit in a quotation for insurance has a greater significance than A time limit in a quotation for insurance has a greater significance than offers in law generally offers in law generally

BB Revocation of a quotation may be made at any time before acceptance Revocation of a quotation may be made at any time before acceptance even if a time limit is given in the quotation even if a time limit is given in the quotation

CC A quotation made generally to the public to insure at specific rates A quotation made generally to the public to insure at specific rates ceases to be a general offer when one person acceptsceases to be a general offer when one person accepts

DD A counter-offer by the individual will not act as a rejection of the original A counter-offer by the individual will not act as a rejection of the original offer provided it occurs within the period of validity of the quotation offer provided it occurs within the period of validity of the quotation

Sample QuestionSample Question

Page 12: GEN 2B Sample Questions. Sample Multi-Choice Questions

In relation to the duration of an offer in the form of a quotation provided by In relation to the duration of an offer in the form of a quotation provided by an insurer to individuals, which of the following statements is true?an insurer to individuals, which of the following statements is true?

AA A time limit in a quotation for insurance has a greater significance than A time limit in a quotation for insurance has a greater significance than offers in law generally offers in law generally

BB Revocation of a quotation may be made at any time before acceptance Revocation of a quotation may be made at any time before acceptance even if a time limit is given in the quotation even if a time limit is given in the quotation

CC A quotation made generally to the public to insure at specific rates ceases A quotation made generally to the public to insure at specific rates ceases to be a general offer when one person acceptsto be a general offer when one person accepts

DD A counter-offer by the individual will not act as a rejection of the original A counter-offer by the individual will not act as a rejection of the original offer provided it occurs within the period of validity of the quotationoffer provided it occurs within the period of validity of the quotation

Answer: A Answer: A

AnswerAnswer

Page 13: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is true regarding warranties in insurance Which of the following statements is true regarding warranties in insurance contracts?contracts?

AA Insurers are entitled to treat a breach of warranty under any insurance policy Insurers are entitled to treat a breach of warranty under any insurance policy as relieving them of all liability under that policy from the date of the breach as relieving them of all liability under that policy from the date of the breach

BB A warranty must be complied with in general terms rather than literally, since A warranty must be complied with in general terms rather than literally, since it does not go to the root of the contract it does not go to the root of the contract

CC For insurance policies with private individuals, there must be a causal For insurance policies with private individuals, there must be a causal connection between a breach of warranty and a loss if insurers wish to avoid connection between a breach of warranty and a loss if insurers wish to avoid a claim paymenta claim payment

DD When there is a breach of warranty, insurers may avoid the claim to which it When there is a breach of warranty, insurers may avoid the claim to which it relates but the policy remains in force relates but the policy remains in force

Sample QuestionSample Question

Page 14: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is true regarding warranties in insurance Which of the following statements is true regarding warranties in insurance contracts?contracts?

AA Insurers are entitled to treat a breach of warranty under any insurance policy Insurers are entitled to treat a breach of warranty under any insurance policy as relieving them of all liability under that policy from the date of the breach as relieving them of all liability under that policy from the date of the breach

BB A warranty must be complied with in general terms rather than literally, since A warranty must be complied with in general terms rather than literally, since it does not go to the root of the contract it does not go to the root of the contract

CC For insurance policies with private individuals, there must be a causal For insurance policies with private individuals, there must be a causal connection between a breach of warranty and a loss if insurers wish to avoid connection between a breach of warranty and a loss if insurers wish to avoid a claim paymenta claim payment

DD When there is a breach of warranty, insurers may avoid the claim to which it When there is a breach of warranty, insurers may avoid the claim to which it relates but the policy remains in force relates but the policy remains in force

Answer: CAnswer: C

AnswerAnswer

Page 15: GEN 2B Sample Questions. Sample Multi-Choice Questions

In what way was the interpretation of a material fact re-defined in the In what way was the interpretation of a material fact re-defined in the case of case of Chariot Inns v Assicurazioni Generali (1981)Chariot Inns v Assicurazioni Generali (1981)??

AA The Judge added a ‘prudent insurer’ test to the definition The Judge added a ‘prudent insurer’ test to the definition BB The Judge added a requirement for an insurer to ask specific The Judge added a requirement for an insurer to ask specific

questions for facts in areas the insurer knows to be material questions for facts in areas the insurer knows to be material CC The Judge added a test of what a ‘reasonable insured’ might see as The Judge added a test of what a ‘reasonable insured’ might see as

material to the definition material to the definition DD The Judge added a test of reasonableness of the insurer to the The Judge added a test of reasonableness of the insurer to the

definition definition

Sample QuestionSample Question

Page 16: GEN 2B Sample Questions. Sample Multi-Choice Questions

In what way was the interpretation of a material fact re-defined in the In what way was the interpretation of a material fact re-defined in the case of case of Chariot Inns v Assicurazioni Generali (1981)Chariot Inns v Assicurazioni Generali (1981)??

AA The Judge added a ‘prudent insurer’ test to the definition The Judge added a ‘prudent insurer’ test to the definition BB The Judge added a requirement for an insurer to ask specific questions The Judge added a requirement for an insurer to ask specific questions

for facts in areas the insurer knows to be material for facts in areas the insurer knows to be material CC The Judge added a test of what a ‘reasonable insured’ might see as The Judge added a test of what a ‘reasonable insured’ might see as

material to the definition material to the definition DD The Judge added a test of reasonableness of the insurer to the definitionThe Judge added a test of reasonableness of the insurer to the definition

Answer:Answer: DD

AnswerAnswer

Page 17: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following is a correct statement regarding the insurable Which of the following is a correct statement regarding the insurable interest of joint owners of property?interest of joint owners of property?

AA They must insure property jointly if they wish to insure for the full They must insure property jointly if they wish to insure for the full value value

BB They may each insure for their respective financial interests in the They may each insure for their respective financial interests in the property but no more property but no more

CC They may each insure for half the valueThey may each insure for half the valueDD They may each insure for the full value They may each insure for the full value

Sample QuestionSample Question

Page 18: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following is a correct statement regarding the insurable Which of the following is a correct statement regarding the insurable interest of joint owners of property?interest of joint owners of property?

AA They must insure property jointly if they wish to insure for the full value They must insure property jointly if they wish to insure for the full value BB They may each insure for their respective financial interests in the They may each insure for their respective financial interests in the

property but no more property but no more CC They may each insure for half the valueThey may each insure for half the valueDD They may each insure for the full value They may each insure for the full value

Answer: DAnswer: D

AnswerAnswer

Page 19: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is correct regarding proximate cause Which of the following statements is correct regarding proximate cause where two operating perils are involved?where two operating perils are involved?

AA If independent perils combine to cause a loss where each would have If independent perils combine to cause a loss where each would have caused some damage on its own, the insurer has no liability for the losscaused some damage on its own, the insurer has no liability for the loss

BB If independent perils combine to cause a loss where each would have If independent perils combine to cause a loss where each would have caused some damage on its own, the insurer has full liability for the losscaused some damage on its own, the insurer has full liability for the loss

CC If independent perils combine to cause a loss where neither would have If independent perils combine to cause a loss where neither would have caused damage on its own, if one is an insured peril and the other caused damage on its own, if one is an insured peril and the other excluded, the insurer has no liability for the lossexcluded, the insurer has no liability for the loss

DD If independent perils combine to cause a loss where neither would have If independent perils combine to cause a loss where neither would have caused damage on its own, if one is an insured peril and the other caused damage on its own, if one is an insured peril and the other unnamed in the policy, the insurer has no liability for the loss unnamed in the policy, the insurer has no liability for the loss

Sample QuestionSample Question

Page 20: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is correct regarding proximate cause Which of the following statements is correct regarding proximate cause where two operating perils are involved?where two operating perils are involved?

AA If independent perils combine to cause a loss where each would have If independent perils combine to cause a loss where each would have caused some damage on its own, the insurer has no liability for the losscaused some damage on its own, the insurer has no liability for the loss

BB If independent perils combine to cause a loss where each would have If independent perils combine to cause a loss where each would have caused some damage on its own, the insurer has full liability for the losscaused some damage on its own, the insurer has full liability for the loss

CC If independent perils combine to cause a loss where neither would have If independent perils combine to cause a loss where neither would have caused damage on its own, if one is an insured peril and the other excluded, caused damage on its own, if one is an insured peril and the other excluded, the insurer has no liability for the lossthe insurer has no liability for the loss

DD If independent perils combine to cause a loss where neither would have If independent perils combine to cause a loss where neither would have caused damage on its own, if one is an insured peril and the other unnamed caused damage on its own, if one is an insured peril and the other unnamed in the policy, the insurer has no liability for the lossin the policy, the insurer has no liability for the loss

Answer: CAnswer: C

AnswerAnswer

Page 21: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is true regarding ‘agreed value’ Which of the following statements is true regarding ‘agreed value’ policies?policies?

AA The agreed value is payable both for total losses and substantial The agreed value is payable both for total losses and substantial partial losses partial losses

BB Once stated the agreed value will apply to the forthcoming period and Once stated the agreed value will apply to the forthcoming period and future periods if the policy is renewed future periods if the policy is renewed

CC Partial losses must be based upon the agreed value unless a policy Partial losses must be based upon the agreed value unless a policy term states otherwiseterm states otherwise

DD Depreciation will be taken into account in any agreed value claims Depreciation will be taken into account in any agreed value claims settlement settlement

Sample QuestionSample Question

Page 22: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is true regarding ‘agreed value’ policies?Which of the following statements is true regarding ‘agreed value’ policies?

AA The agreed value is payable both for total losses and substantial partial The agreed value is payable both for total losses and substantial partial losses losses

BB Once stated the agreed value will apply to the forthcoming period and future Once stated the agreed value will apply to the forthcoming period and future periods if the policy is renewed periods if the policy is renewed

CC Partial losses must be based upon the agreed value unless a policy term Partial losses must be based upon the agreed value unless a policy term states otherwisestates otherwise

DD Depreciation will be taken into account in any agreed value claims Depreciation will be taken into account in any agreed value claims settlement settlement

Answer: CAnswer: C

AnswerAnswer

Page 23: GEN 2B Sample Questions. Sample Multi-Choice Questions

When considering When considering common lawcommon law and and civil lawcivil law systems which of the systems which of the following statements is true?following statements is true?

AA Common lawCommon law is a system of legal decisions adaptable to meet new is a system of legal decisions adaptable to meet new situations situations

BB Common lawCommon law is a system of legal decisions that are fixed and not is a system of legal decisions that are fixed and not adaptable to meet new situations adaptable to meet new situations

CC Civil lawCivil law systems involve a process of legal decisions adaptable to systems involve a process of legal decisions adaptable to meet new situations meet new situations

DD Civil lawCivil law systems involve a process of legal decisions that are fixed systems involve a process of legal decisions that are fixed and not adaptable to meet new situations and not adaptable to meet new situations

Sample QuestionSample Question

Page 24: GEN 2B Sample Questions. Sample Multi-Choice Questions

When considering When considering common lawcommon law and and civil lawcivil law systems which of the systems which of the following statements is true?following statements is true?

AA Common lawCommon law is a system of legal decisions adaptable to meet new is a system of legal decisions adaptable to meet new situations situations

BB Common lawCommon law is a system of legal decisions that are fixed and not is a system of legal decisions that are fixed and not adaptable to meet new situations adaptable to meet new situations

CC Civil lawCivil law systems involve a process of legal decisions adaptable to systems involve a process of legal decisions adaptable to meet new situations meet new situations

DD Civil lawCivil law systems involve a process of legal decisions that are fixed systems involve a process of legal decisions that are fixed and not adaptable to meet new situationsand not adaptable to meet new situations

Answer: AAnswer: A

AnswerAnswer

Page 25: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following types of claim is Which of the following types of claim is EXEMPTEXEMPT from being dealt from being dealt with by the Personal Injuries Assessment Board (PIAB)?with by the Personal Injuries Assessment Board (PIAB)?

AA Employer’s liability – negligence claimsEmployer’s liability – negligence claimsBB Employer’s liability – statutory liability claimsEmployer’s liability – statutory liability claimsCC Motor Personal injury claimsMotor Personal injury claimsDD Medical negligence claims Medical negligence claims

Sample QuestionSample Question

Page 26: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following types of claim is Which of the following types of claim is EXEMPTEXEMPT from being dealt from being dealt with by the Personal Injuries Assessment Board (PIAB)?with by the Personal Injuries Assessment Board (PIAB)?

AA Employer’s liability – negligence claimsEmployer’s liability – negligence claimsBB Employer’s liability – statutory liability claimsEmployer’s liability – statutory liability claimsCC Motor Personal injury claimsMotor Personal injury claimsDD Medical negligence claimsMedical negligence claims

Answer: DAnswer: D

AnswerAnswer

Page 27: GEN 2B Sample Questions. Sample Multi-Choice Questions

For an action for libel to succeed which of the following elements For an action for libel to succeed which of the following elements must be present?must be present?

AA Actual damage must be provedActual damage must be provedBB Intent on the part of the defendant Intent on the part of the defendant CC Malice on the part of the defendantMalice on the part of the defendantDD A statement in a permanent form identifying the plaintiff A statement in a permanent form identifying the plaintiff

Sample QuestionSample Question

Page 28: GEN 2B Sample Questions. Sample Multi-Choice Questions

For an action for libel to succeed which of the following elements For an action for libel to succeed which of the following elements must be present?must be present?

AA Actual damage must be provedActual damage must be provedBB Intent on the part of the defendant Intent on the part of the defendant CC Malice on the part of the defendantMalice on the part of the defendantDD A statement in a permanent form identifying the plaintiffA statement in a permanent form identifying the plaintiff

Answer: DAnswer: D

AnswerAnswer

Page 29: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following best describes a tort?Which of the following best describes a tort?

AA A crimeA crimeBB A wrongA wrongCC A breach of statutory dutyA breach of statutory dutyDD A breach of contract A breach of contract

Sample QuestionSample Question

Page 30: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following best describes a tort?Which of the following best describes a tort?

AA A crimeA crimeBB A wrongA wrongCC A breach of statutory dutyA breach of statutory dutyDD A breach of contractA breach of contract

Answer: B Answer: B

AnswerAnswer

Page 31: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following must be present for ‘consideration’ to be valid Which of the following must be present for ‘consideration’ to be valid and effective, in connection with the law of contracts?and effective, in connection with the law of contracts?

AA It must not be supplied by someone other than the promisseeIt must not be supplied by someone other than the promisseeBB It needs to be adequateIt needs to be adequateCC It can be past, present or futureIt can be past, present or futureDD It may be something that the promissee is already bound to do It may be something that the promissee is already bound to do

Sample QuestionSample Question

Page 32: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following must be present for ‘consideration’ to be valid Which of the following must be present for ‘consideration’ to be valid and effective, in connection with the law of contracts?and effective, in connection with the law of contracts?

AA It must not be supplied by someone other than the promisseeIt must not be supplied by someone other than the promisseeBB It needs to be adequateIt needs to be adequateCC It can be past, present or futureIt can be past, present or futureDD It may be something that the promissee is already bound to doIt may be something that the promissee is already bound to do

Answer: AAnswer: A

AnswerAnswer

Page 33: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following clauses alters the insured’s duty to disclose Which of the following clauses alters the insured’s duty to disclose material facts during the currency of the policy?material facts during the currency of the policy?

AA Increase in riskIncrease in riskBB Fraud Fraud CC SubrogationSubrogationDD Contribution Contribution

Sample QuestionSample Question

Page 34: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following clauses alters the insured’s duty to disclose Which of the following clauses alters the insured’s duty to disclose material facts during the currency of the policy?material facts during the currency of the policy?

AA Increase in riskIncrease in riskBB Fraud Fraud CC SubrogationSubrogationDD ContributionContribution

Answer: A Answer: A

AnswerAnswer

Page 35: GEN 2B Sample Questions. Sample Multi-Choice Questions

How do insurers justify the insuring of future profits of a firm under a How do insurers justify the insuring of future profits of a firm under a business interruption policy?business interruption policy?

AA There is no real justification but insurers adopt a pragmatic approach There is no real justification but insurers adopt a pragmatic approach to providing this coverto providing this cover

BB The amount of insurance is exactly quantifiable at inceptionThe amount of insurance is exactly quantifiable at inceptionCC The expectancy of profit is founded on a legal right of ownershipThe expectancy of profit is founded on a legal right of ownershipDD Business interruption is not an indemnity policy, but a benefit policy Business interruption is not an indemnity policy, but a benefit policy

Sample QuestionSample Question

Page 36: GEN 2B Sample Questions. Sample Multi-Choice Questions

How do insurers justify the insuring of future profits of a firm under a How do insurers justify the insuring of future profits of a firm under a business interruption policy?business interruption policy?

AA There is no real justification but insurers adopt a pragmatic approach There is no real justification but insurers adopt a pragmatic approach to providing this coverto providing this cover

BB The amount of insurance is exactly quantifiable at inceptionThe amount of insurance is exactly quantifiable at inceptionCC The expectancy of profit is founded on a legal right of ownershipThe expectancy of profit is founded on a legal right of ownershipDD Business interruption is not an indemnity policy, but a benefit policyBusiness interruption is not an indemnity policy, but a benefit policy

Answer: CAnswer: C

AnswerAnswer

Page 37: GEN 2B Sample Questions. Sample Multi-Choice Questions

When considering proximate cause which of the following statements When considering proximate cause which of the following statements is true of ‘last straw’ cases?is true of ‘last straw’ cases?

AA The final ‘last straw’ peril will be considered the proximate causeThe final ‘last straw’ peril will be considered the proximate causeBB Both the ‘last straw’ peril and the original cause are considered Both the ‘last straw’ peril and the original cause are considered

proximate causes proximate causes CC The originating peril will be considered the proximate causeThe originating peril will be considered the proximate causeDD The peril providing a policyholder with the most favourable result will The peril providing a policyholder with the most favourable result will

be considered the proximate cause be considered the proximate cause

Sample QuestionSample Question

Page 38: GEN 2B Sample Questions. Sample Multi-Choice Questions

When considering proximate cause which of the following statements When considering proximate cause which of the following statements is true of ‘last straw’ cases?is true of ‘last straw’ cases?

AA The final ‘last straw’ peril will be considered the proximate causeThe final ‘last straw’ peril will be considered the proximate causeBB Both the ‘last straw’ peril and the original cause are considered Both the ‘last straw’ peril and the original cause are considered

proximate causes proximate causes CC The originating peril will be considered the proximate causeThe originating peril will be considered the proximate causeDD The peril providing a policyholder with the most favourable result will The peril providing a policyholder with the most favourable result will

be considered the proximate causebe considered the proximate cause

Answer: CAnswer: C

AnswerAnswer

Page 39: GEN 2B Sample Questions. Sample Multi-Choice Questions

What is the basis for the measure of indemnity used for farming stock What is the basis for the measure of indemnity used for farming stock under an indemnity policy?under an indemnity policy?

AA Trade priceTrade priceBB Market valueMarket valueCC Replacement costReplacement costDD Individually negotiated settlement Individually negotiated settlement

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Page 40: GEN 2B Sample Questions. Sample Multi-Choice Questions

What is the basis for the measure of indemnity used for farming stock What is the basis for the measure of indemnity used for farming stock under an indemnity policy?under an indemnity policy?

AA Trade priceTrade priceBB Market valueMarket valueCC Replacement costReplacement costDD Individually negotiated settlementIndividually negotiated settlement

Answer: B Answer: B

AnswerAnswer

Page 41: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is true in relation to abandonment?Which of the following statements is true in relation to abandonment?

AA An insurer who accepts abandonment of goods becomes the owner An insurer who accepts abandonment of goods becomes the owner of those goodsof those goods

BB An insurer is not entitled to make any profit from abandoned propertyAn insurer is not entitled to make any profit from abandoned propertyCC An insurer must accept abandoned property and deal with its An insurer must accept abandoned property and deal with its

disposaldisposalDD Abandonment gives the insurer the right to pursue a claim against a Abandonment gives the insurer the right to pursue a claim against a

third party third party

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Page 42: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following statements is true in relation to abandonment?Which of the following statements is true in relation to abandonment?

AA An insurer who accepts abandonment of goods becomes the owner An insurer who accepts abandonment of goods becomes the owner of those goodsof those goods

BB An insurer is not entitled to make any profit from abandoned propertyAn insurer is not entitled to make any profit from abandoned propertyCC An insurer must accept abandoned property and deal with its An insurer must accept abandoned property and deal with its

disposaldisposalDD Abandonment gives the insurer the right to pursue a claim against a Abandonment gives the insurer the right to pursue a claim against a

third partythird party

Answer: AAnswer: A

AnswerAnswer

Page 43: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following is Which of the following is UNLIKELYUNLIKELY to give rise to subrogation to give rise to subrogation rights?rights?

AA TortTortBB StatuteStatuteCC ContractContractDD Subject-matter of the insurance Subject-matter of the insurance

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Page 44: GEN 2B Sample Questions. Sample Multi-Choice Questions

Which of the following is Which of the following is UNLIKELYUNLIKELY to give rise to subrogation to give rise to subrogation rights?rights?

AA TortTortBB StatuteStatuteCC ContractContractDD Subject-matter of the insuranceSubject-matter of the insurance

Answer: CAnswer: C

AnswerAnswer

Page 45: GEN 2B Sample Questions. Sample Multi-Choice Questions

If the insured waives their right of recovery against a negligent third If the insured waives their right of recovery against a negligent third party for damage they have claimed for under a property policy, what party for damage they have claimed for under a property policy, what effect, if any does this have on the property insurer’s rights of effect, if any does this have on the property insurer’s rights of recovery?recovery?

AA None, the insurer’s rights are unaffected by the insured’s actionNone, the insurer’s rights are unaffected by the insured’s actionBB The outcome will depend upon the wording of the policy, and the The outcome will depend upon the wording of the policy, and the

insurer may retain recovery rightsinsurer may retain recovery rightsCC The insurer must apply to a Court to reinstate their recovery rightsThe insurer must apply to a Court to reinstate their recovery rightsDD The insurer loses all rights of recovery The insurer loses all rights of recovery

Sample QuestionSample Question

Page 46: GEN 2B Sample Questions. Sample Multi-Choice Questions

If the insured waives their right of recovery against a negligent third If the insured waives their right of recovery against a negligent third party for damage they have claimed for under a property policy, what party for damage they have claimed for under a property policy, what effect, if any does this have on the property insurer’s rights of effect, if any does this have on the property insurer’s rights of recovery?recovery?

AA None, the insurer’s rights are unaffected by the insured’s actionNone, the insurer’s rights are unaffected by the insured’s actionBB The outcome will depend upon the wording of the policy, and the The outcome will depend upon the wording of the policy, and the

insurer may retain recovery rightsinsurer may retain recovery rightsCC The insurer must apply to a Court to reinstate their recovery rightsThe insurer must apply to a Court to reinstate their recovery rightsDD The insurer loses all rights of recoveryThe insurer loses all rights of recovery

Answer: DAnswer: D

AnswerAnswer

Page 47: GEN 2B Sample Questions. Sample Multi-Choice Questions

If there has been an innocent breach of utmost good faith by an If there has been an innocent breach of utmost good faith by an insured, which of the following is an option available to the insurer?insured, which of the following is an option available to the insurer?

AA A right to avoid the policyA right to avoid the policyBB A right to keep the premium A right to keep the premium CC A right to sue for damagesA right to sue for damagesDD A right to refuse a claim but otherwise allow the policy to stand A right to refuse a claim but otherwise allow the policy to stand

Sample QuestionSample Question

Page 48: GEN 2B Sample Questions. Sample Multi-Choice Questions

If there has been an innocent breach of utmost good faith by an If there has been an innocent breach of utmost good faith by an insured, which of the following is an option available to the insurer?insured, which of the following is an option available to the insurer?

AA A right to avoid the policyA right to avoid the policyBB A right to keep the premium A right to keep the premium CC A right to sue for damagesA right to sue for damagesDD A right to refuse a claim but otherwise allow the policy to standA right to refuse a claim but otherwise allow the policy to stand

Answer: AAnswer: A

AnswerAnswer

Page 49: GEN 2B Sample Questions. Sample Multi-Choice Questions

When assigning the subject-matter of an insurance policy, which of When assigning the subject-matter of an insurance policy, which of the following statements is true?the following statements is true?

AA The insurer is bound to agree to assignment of the related policy if The insurer is bound to agree to assignment of the related policy if given notice of the factgiven notice of the fact

BB The assignee is entitled to continue the related insurance on the The assignee is entitled to continue the related insurance on the same terms and conditions as applied before the assignmentsame terms and conditions as applied before the assignment

CC The insurer has a commitment only to the original insured party and The insurer has a commitment only to the original insured party and not successors in titlenot successors in title

DD Assignment of the policy may take place any time after the Assignment of the policy may take place any time after the assignment of the subject-matter of the contract assignment of the subject-matter of the contract

Sample QuestionSample Question

Page 50: GEN 2B Sample Questions. Sample Multi-Choice Questions

When assigning the subject-matter of an insurance policy, which of When assigning the subject-matter of an insurance policy, which of the following statements is true?the following statements is true?

AA The insurer is bound to agree to assignment of the related policy if The insurer is bound to agree to assignment of the related policy if given notice of the factgiven notice of the fact

BB The assignee is entitled to continue the related insurance on the The assignee is entitled to continue the related insurance on the same terms and conditions as applied before the assignmentsame terms and conditions as applied before the assignment

CC The insurer has a commitment only to the original insured party and The insurer has a commitment only to the original insured party and not successors in titlenot successors in title

DD Assignment of the policy may take place any time after the Assignment of the policy may take place any time after the assignment of the subject-matter of the contractassignment of the subject-matter of the contract

Answer: CAnswer: C

AnswerAnswer

Page 51: GEN 2B Sample Questions. Sample Multi-Choice Questions

In contract law, what is the remedy of rescission?In contract law, what is the remedy of rescission?

AA Returning the parties to their pre-contractual positionReturning the parties to their pre-contractual positionBB Correction of a written documentCorrection of a written documentCC The valuing of definable work doneThe valuing of definable work doneDD A negative stipulation A negative stipulation

Sample QuestionSample Question

Page 52: GEN 2B Sample Questions. Sample Multi-Choice Questions

In contract law, what is the remedy of rescission?In contract law, what is the remedy of rescission?

AA Returning the parties to their pre-contractual positionReturning the parties to their pre-contractual positionBB Correction of a written documentCorrection of a written documentCC The valuing of definable work doneThe valuing of definable work doneDD A negative stipulationA negative stipulation

Answer: AAnswer: A

AnswerAnswer

Page 53: GEN 2B Sample Questions. Sample Multi-Choice Questions

Sample ProblemSample ProblemQuestion Question

Page 54: GEN 2B Sample Questions. Sample Multi-Choice Questions

ABC factors limited purchased a building which had originally been ABC factors limited purchased a building which had originally been constructed as a church and was therefore of substantial constructed as a church and was therefore of substantial construction. They purchased it for a price of €190,000 (its current construction. They purchased it for a price of €190,000 (its current resale value) though its rebuilding cost was substantially more, resale value) though its rebuilding cost was substantially more, estimated at €400,000. Its site value is €50,000. The cost of erecting estimated at €400,000. Its site value is €50,000. The cost of erecting a building of modern construction to provide the same functionality is a building of modern construction to provide the same functionality is estimated at €280,000. estimated at €280,000.

Sample Problem Sample Problem QuestionQuestion

Page 55: GEN 2B Sample Questions. Sample Multi-Choice Questions

If ABC Factors were actively wishing to sell the building, but wished If ABC Factors were actively wishing to sell the building, but wished to insure it what would represent a fair basis for indemnity, based to insure it what would represent a fair basis for indemnity, based upon the decision in upon the decision in Leppard v Excess Insurance Co Ltd (1979)Leppard v Excess Insurance Co Ltd (1979)??

AA €140,000€140,000BB €190,000€190,000CC €230,000€230,000DD €400,000 €400,000

Problem Question AProblem Question A

Page 56: GEN 2B Sample Questions. Sample Multi-Choice Questions

If ABC Factors were intending to use the building and not sell it If ABC Factors were intending to use the building and not sell it (rebuilding in the event of damage), what would be a fair basis for (rebuilding in the event of damage), what would be a fair basis for indemnity, based upon the decision in indemnity, based upon the decision in Reynolds and Anderson v Reynolds and Anderson v Phoenix Insurance Co Ltd (1978)Phoenix Insurance Co Ltd (1978)??

AA €140,000€140,000BB €230,000€230,000CC €280,000€280,000DD €400,000 €400,000

Problem Question BProblem Question B

Page 57: GEN 2B Sample Questions. Sample Multi-Choice Questions

If ABC Factors insure the building on an indemnity basis and If ABC Factors insure the building on an indemnity basis and subsequently a serious fire claim occurs, necessitating substantial subsequently a serious fire claim occurs, necessitating substantial rebuilding, which of the following statements is true regarding any rebuilding, which of the following statements is true regarding any improvement in value following repairs being carried out?improvement in value following repairs being carried out?

AA No deduction for this increase in value will be made by insurersNo deduction for this increase in value will be made by insurersBB The only deduction that could be made is in respect of any excess that The only deduction that could be made is in respect of any excess that

applies under ABC Factors’ policyapplies under ABC Factors’ policyCC Insurers will deduct the full amount of the difference in value when Insurers will deduct the full amount of the difference in value when

settling the claim with ABC Factorssettling the claim with ABC FactorsDD Insurers will only make a deduction if this can be negotiated with the Insurers will only make a deduction if this can be negotiated with the

ABC Factors ABC Factors

Problem Question CProblem Question C

Page 58: GEN 2B Sample Questions. Sample Multi-Choice Questions

What term is used to describe a building such as the one owned by What term is used to describe a building such as the one owned by ABC Factors, now used for a different purpose than that originally ABC Factors, now used for a different purpose than that originally intended?intended?

AA AdaptedAdaptedBB ObsoleteObsoleteCC ImprovedImproved

DD AgedAged

Problem Question DProblem Question D

Page 59: GEN 2B Sample Questions. Sample Multi-Choice Questions

If, instead of insuring on an indemnity basis, ABC Factors were to If, instead of insuring on an indemnity basis, ABC Factors were to insure the building under a policy subject to the reinstatement insure the building under a policy subject to the reinstatement memorandum, what effect would this have on the following claims memorandum, what effect would this have on the following claims settlements if the sum insured they choose is €350,000?settlements if the sum insured they choose is €350,000?

AA A claim for €4,000 would be settled for €3,500A claim for €4,000 would be settled for €3,500BB A claim for €4,000 would be settled in fullA claim for €4,000 would be settled in fullCC A claim for €375,000 would be for €328,125A claim for €375,000 would be for €328,125DD A claim for €375,000 would be settled in fullA claim for €375,000 would be settled in full

Problem Question EProblem Question E

Page 60: GEN 2B Sample Questions. Sample Multi-Choice Questions

1A – Answer: A1A – Answer: A

1B 1B – Answer: D– Answer: D

1C 1C – Answer: C– Answer: C

1D 1D – Answer: B– Answer: B

1E 1E – Answer: B– Answer: B

Answers to Problem Answers to Problem QuestionQuestion