Pass CII E05 PDF Dumps | Recently Updated 52 Questions
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CII E05 certification exam is recognized globally as a benchmark for excellence in insurance law. Examination element of M05 Insurance law certification is awarded by the Chartered Insurance Institute, a professional organization that promotes excellence in the insurance industry. Examination element of M05 Insurance law certification is essential for insurance professionals who want to demonstrate their knowledge and expertise in insurance law. It is also a valuable asset for those who work in related fields, such as law and finance.
NEW QUESTION # 22
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must
- A. settle a claim promptly once settlement has been agreed.
- B. not unreasonably reject an insured's claim.
- C. provide reasonable guidance to an insured to help him make a claim.
- D. handle a claims notification within 14 days.
Answer: A,B,C
NEW QUESTION # 23
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The doctrine of subrogation is excluded from the policy.
- B. Cover is suspended whilst the insurer pursues an action for subrogation.
- C. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- D. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
Answer: C
NEW QUESTION # 24
What is the most common for of corporation?
- A. Registered corporation.
- B. Statutory corporation.
- C. Corporation sole.
- D. Chartered corporation.
Answer: A
NEW QUESTION # 25
The principle of subrogation prevents a policyholder from profiting from
- A. claiming under both his insurance policy and against any negligent third party.
- B. assigning abandonment rights to the insurer.
- C. retaining salvaged property.
- D. submitting a full claim recovery under more than one insurance policy.
Answer: A
NEW QUESTION # 26
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To encourage good risk management by the insured throughout the policy period.
- B. To ensure that underinsurance is avoided at all times.
- C. To maintain the annual aggregate limit of liability throughout the policy period.
- D. To enable an insurer to charge an additional premium if the warranty is continually breached.
Answer: A
NEW QUESTION # 27
Insurance agencies are usually created by way of
- A. unilateral agreement.
- B. express agreement.
- C. implied agreement.
- D. deed of agreement.
Answer: B
NEW QUESTION # 28
For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?
- A. Where there is underinsurance.
- B. Upon the request of any person(s) interested in the buildings.
- C. Where the building was destroyed by an explosion.
- D. When fraud or arson by the insured is suspected.
Answer: B,D
NEW QUESTION # 29
Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
- A. £5,000,000
- B. £7,500,000
- C. £9,000,000
- D. £10,000,000
Answer: C
NEW QUESTION # 30
A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under
- A. a condition precedent to liability.
- B. statute.
- C. a condition subsequent to liability.
- D. tort.
Answer: B
NEW QUESTION # 31
In what circumstances is abandonment automatic under a marine hull insurance policy?
- A. The insured has performed an action of abandonment.
- B. The insured has sent a formal notice of abandonment.
- C. The actual total loss of the vessel.
- D. The constructive total loss of the vessel.
Answer: C
NEW QUESTION # 32
A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to
- A. settle the claim and cancel the insurance policy from inception.
- B. avoid the claim automatically due to the breach of the policy condition.
- C. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
- D. settle the claim and recover its outlay from the insured.
Answer: B
NEW QUESTION # 33
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. honest proposer.
- B. reasonable person.
- C. prudent underwriter.
- D. diligent broker.
Answer: C
NEW QUESTION # 34
For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as
- A. a basis of the contract clause.
- B. an exception clause.
- C. an express term.
- D. a continuing warranty.
Answer: A,C
NEW QUESTION # 35
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. has been individually negotiated and is to the detriment of either one of the parties.
- B. provides insurance where the scope of cover is narrow compared to the premium charged.
- C. does not restrict liability for death or personal injury.
- D. causes a significant imbalance in the parties' rights to the detriment of the consumer.
Answer: D
NEW QUESTION # 36
For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?
- A. Disclosure of the name of the principal.
- B. Bankruptcy of the agent.
- C. Bankruptcy of the principal.
- D. Death of the agent.
Answer: C,D
NEW QUESTION # 37
Ambiguous terms in a household insurance contract are generally construed against the
- A. policyholder due to the literal rule.
- B. insurer due to the ejusdem generis rule.
- C. insurer due to the contra proferentem rule.
- D. policyholder due to the noscitur a sociis rule.
Answer: C
NEW QUESTION # 38
The branch of law particularly relevant when handling negligence claims is
- A. public law.
- B. constitutional law.
- C. civil law.
- D. administrative.
Answer: C
NEW QUESTION # 39
Which divisional court of the High Court includes a Commercial Court?
- A. Partnership Division.
- B. Family Division.
- C. Queen's Bench Division.
- D. Chancery Division.
Answer: D
NEW QUESTION # 40
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. Both the insurer and Paul at different times.
- B. Paul as it is a consumer contract.
- C. The insurer at all times.
- D. No one as Tim is not a party to the insurance contract.
Answer: C
NEW QUESTION # 41
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