[2021] E05 PDF Questions - Perfect Prospect To Go With iPassleader Practice Exam
CII E05 Pdf Questions - Outstanding Practice To your Exam
NEW QUESTION 15
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The original physical injury of the dog bite.
- B. The delay in seeking medical treatment.
- C. The delay in obtaining the correct medical treatment.
- D. The unhygienic washing of the dog bite.
Answer: A
NEW QUESTION 16
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?
- A. It will usually override any implied term which conflicts with it.
- B. It may be implied by conduct.
- C. It may be oral or in writing.
- D. It must be evidenced in documentary form.
Answer: A,C
NEW QUESTION 17
A breach of warranty under the general law of contract legally entitles an injured party to
- A. avoid the contract from the date of the breach.
- B. avoid the contract ab initio.
- C. claim damages.
- D. obtain specific performance.
Answer: C
NEW QUESTION 18
A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
- A. If there is a breach of a warranty requiring the burglar alarm to be set.
- B. If the policyholder exaggerates the value of the claim.
- C. If the tumble dryer is covered by extended warranty insurance.
- D. If there is a subrogation action against the manufacturer of the tumble dryer.
Answer: B
NEW QUESTION 19
In terms of private motor insurance, a renewal offer can be accepted
- A. only by written communication.
- B. by the proposer acting in reliance of the offer.
- C. only by the proposer personally.
- D. by any third party.
Answer: B
NEW QUESTION 20
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. assigns the contract to a third party.
- B. signs and submits the completed proposal form to the insurer.
- C. dies and his estate submits a claim to the insurer.
- D. forms the contract with the insurer.
Answer: D
NEW QUESTION 21
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods only.
- B. trespass to goods, conversion, nuisance and battery.
- C. trespass to goods and conversion only.
- D. trespass to goods, conversion and nuisance only,
Answer: A
NEW QUESTION 22
For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?
- A. A deliberate attempt to obtain the proceeds of two policies.
- B. An overlap in cover between two different types of insurance policy.
- C. A merger between two major insurance companies.
- D. The inadvertent non-cancellation of a policy when a new policy is taken out.
Answer: A,B
NEW QUESTION 23
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 the building was destroyed by an explosion.
- B. Upon the request of any person(s) interested in the buildings.
- C. When fraud or arson by the insured is suspected.
- D. Where there is underinsurance.
Answer: B,C
NEW QUESTION 24
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 recover its outlay from the insured.
- 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 cancel the insurance policy from inception.
Answer: B
NEW QUESTION 25
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- B. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- C. Cover is suspended whilst the insurer pursues an action for subrogation.
- D. The doctrine of subrogation is excluded from the policy.
Answer: A
NEW QUESTION 26
For this question more than 1 option is correct. You must select all the correct options to gain the mark. Which special defences are available to the fort of libel?
- A. Statutory authority.
- B. Prescription.
- C. Honest opinion.
- D. Privilege.
- E. Necessity.
Answer: C,D
NEW QUESTION 27
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. Official law reports.
- B. Case law.
- C. International treaties.
- D. Legislation.
Answer: B,D
NEW QUESTION 28
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. provides insurance where the scope of cover is narrow compared to the premium charged.
- B. has been individually negotiated and is to the detriment of either one of the parties.
- C. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- D. does not restrict liability for death or personal injury.
Answer: C
NEW QUESTION 29
How can an agency relationship be best described?
- A. A person has ratified another party's action.
- B. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
- C. A person has transferred his obligations under a contract to another party.
- D. A person has the authority to act on behalf of another party.
Answer: D
NEW QUESTION 30
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To enable an insurer to charge an additional premium if the warranty is continually breached.
- B. To encourage good risk management by the insured throughout the policy period.
- C. To ensure that underinsurance is avoided at all times.
- D. To maintain the annual aggregate limit of liability throughout the policy period.
Answer: B
NEW QUESTION 31
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
- B. as a result of stress or harassment at work.
- C. through fear for the safety of another person involved in an accident which he witnessed.
- D. through fear for his own safety in an accident.
Answer: D
NEW QUESTION 32
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
- A. applies a specific exclusion within the policy wording.
- B. provides coverage that is more restrictive than that of other insurers.
- C. requires notification of a claim within a very short time period.
- D. imposes a premium loading.
Answer: C
NEW QUESTION 33
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. £7,500,000
- B. £5,000,000
- C. £10,000,000
- D. £9,000,000
Answer: D
NEW QUESTION 34
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?
- A. It is answerable to its shareholders or members.
- B. It is an organisation with a separate legal existence to its membership.
- C. It is not treated as a separate legal entity.
- D. It is a legal person representing one official position.
Answer: A,B
NEW QUESTION 35
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