Free CILA Handling Claims for Specific Losses (Option 1 – General) (CH3) Practice Questions

Sample Practice Questions

Try these 10 sample questions from the CILA Handling Claims for Specific Losses (Option 1 – General) (CH3) practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A claimant can no longer enjoy a weekly sporting activity because of an accident injury. The handler is valuing the pain, suffering and loss of amenity itself. Under which heading does this compensation fall?

   1. A.General damagesCorrect answer: A
   2. B.Special damages
   3. C.Recoverable benefits
   4. D.Claimant's costs

   Explanation: The course book states, "PSLA are known as ‘general damages’." The lost enjoyment is part of the injury’s non-financial effect. Special damages concern financial loss, recoverable benefits are a separate recovery component, and claimant costs concern legal expenditure.

   Reference: CILA CH3 Advanced Claims Handling Course Book — Section 1.2.2, p. 8

2. 2An insurer handles an injury claim governed by the general Personal Injury Pre-Action Protocol. The accident and defendant are both in England and Wales. What is the normal maximum period from posting the Letter of Claim for the reply identifying the insurer?

   1. A.14 calendar days
   2. B.21 calendar daysCorrect answer: B
   3. C.28 calendar days
   4. D.42 calendar days

   Explanation: Paragraph 6.2 requires a reply "within 21 calendar days of the date of posting". The overseas extension does not apply to these facts. Fourteen, 28 and 42 days are not the domestic reply period under this paragraph.

   Reference: Personal Injury Pre-Action Protocol — Paragraphs 6.2–6.4

3. 3A flood requires a family to relocate for several months. In its guidance distinguishing a few days' displacement from a longer period, which accommodation category does FOS identify as potentially better for the longer period?

   1. A.Hotel or bed-and-breakfast accommodation
   2. B.A succession of stays with friends or relatives
   3. C.A suitable private rental property or serviced apartment.Correct answer: C
   4. D.A series of short holiday accommodation bookings

   Explanation: FOS identifies "private rental accommodation or serviced apartment" for longer displacement. The handler should investigate a stable arrangement appropriate to the expected period rather than extend a succession of emergency placements.

   Reference: FOS: Flood damage — Allowances for temporary accommodation or disturbance

4. 4A handler reviews a ground-bearing concrete floor repair specification in England. It includes a damp-proof membrane. Which adjoining moisture-control component should that membrane be continuous with under Approved Document C?

   1. A.A vapour control layer
   2. B.A cavity insulation layer
   3. C.A damp-proof courseCorrect answer: C
   4. D.A render coat

   Explanation: Paragraph 4.2(c) calls for a membrane "continuous with the dampproof courses in walls". Joining these barriers protects the floor-to-wall junction from ground moisture. Roof vapour control, insulation and render perform different functions.

   Reference: Approved Document C: Site preparation and resistance to contaminants and moisture — Paragraph 4.2(c), p. 24

5. 5An insured commercial rebuilding project in Great Britain will involve separate roofing and electrical contractors. Under CDM 2015, what appointments must the commercial client make in writing before the construction phase begins?

   1. A.A principal designer and a principal contractorCorrect answer: A
   2. B.A commercial client and a permanent-works designer
   3. C.A principal contractor and a commercial client
   4. D.A permanent-works designer and a trade contractor

   Explanation: Regulation 5 requires "a designer with control over the pre-construction phase as principal designer; and a contractor as principal contractor." The two designated principal roles must be appointed for this multi-contractor project. Naming a client or an ordinary designer/trade contractor does not supply both appointments.

   Reference: HSE L153: Managing health and safety in construction — Regulation 5(1)–(2), p. 15

6. 6The accounting gross-profit figure differs from gross profit calculated under the BI policy's definition. Which measure controls the insured gross-profit calculation?

   1. A.The policy-defined gross profitCorrect answer: A
   2. B.The accounting gross profit
   3. C.The accounting net profit
   4. D.The business's gross sales revenue

   Explanation: FCA says gross profit may have "defined meanings" in the policy. The contractual gross-profit measure controls this cover. Accounting gross profit, net profit and gross sales are genuine financial measures, but cannot automatically replace that definition.

   Reference: FCA: General FAQs for BI policyholders — What does my policy cover? Type of cover

7. 7During a widespread flood, a policyholder calls the handler while someone in the home is in immediate danger. Which response has priority before discussing property inspection or evidence collection?

   1. A.Arrange the next available loss-adjuster appointment.
   2. B.Direct immediate contact with the emergency services on 999.Correct answer: B
   3. C.Arrange the earliest available restoration-contractor visit.
   4. D.Open the property claim and complete the loss inventory.

   Explanation: GOV.UK says, "call 999 if you or someone else is in immediate danger". Protecting life takes priority over inspection, contractor scheduling and routine claim documentation. Those other actions can follow once the emergency is addressed.

   Reference: GOV.UK: Help during a flood — If you get a severe flood warning

8. 8In an England and Wales road-traffic injury claim, payroll evidence shows that an employee would have received £750 net each week during a six-week absence but actually received £250 net each week. Ignoring benefits recovery and other heads, what past earnings loss should the handler include?

   1. A.£1,500
   2. B.£3,000Correct answer: B
   3. C.£4,500
   4. D.£6,000

   Explanation: The Official Injury Claim guide identifies "loss of earnings" as an injury-related financial loss. On the supplied net payroll evidence, (£750 − £250) × 6 = £3,000, without rounding. £1,500 counts pay received; £4,500 ignores that pay; £6,000 adds expected and received pay instead of measuring the shortfall.

   Reference: Official Injury Claim: Guide to Making a Claim — Section on valuing injury and other losses

9. 9Under the general Personal Injury Pre-Action Protocol, an insurer acknowledges a domestic England and Wales Letter of Claim. No special extension applies. What is the maximum normal investigation period measured from that acknowledgment?

   1. A.One month
   2. B.Two months
   3. C.Three monthsCorrect answer: C
   4. D.Six months

   Explanation: Paragraph 6.3 provides "a maximum of three months from the date of acknowledgment of the Letter of Claim". Six months is the normal extended overseas period, not this domestic period; one and two months are shorter than the stated maximum.

   Reference: Personal Injury Pre-Action Protocol — Paragraphs 6.3–6.4

10. 10Following a regional flood, no immediately available rental meets every reasonable household requirement. The insurer has accepted alternative-accommodation cover. What is the FOS-guided next step?

    1. A.Work with the household to agree a reasonable compromise.Correct answer: A
    2. B.Require the household to select from the first search results.
    3. C.Postpone housing discussions until the local market recovers.
    4. D.Treat the lack of an exact match as exhausting the housing search.

    Explanation: FOS expects the insurer and policyholder to find "a reasonable solution or compromise." Restricted supply calls for cooperative problem solving, not unilateral selection, indefinite postponement or ending the search.

    Reference: FOS: Flood damage guidance for businesses — Allowances for alternative accommodation