CII E05 Real Exam Questions Test Engine Dumps Training With 52 Questions
E05 Actual Questions Answers PDF 100% Cover Real Exam Questions
NEW QUESTION 27
Insurance agencies are usually created by way of
- A. express agreement.
- B. implied agreement.
- C. deed of agreement.
- D. unilateral agreement.
Answer: A
NEW QUESTION 28
A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?
- A. A collateral condition.
- B. A condition precedent to the contract.
- C. A condition precedent to liability.
- D. A suspensive condition.
Answer: C
NEW QUESTION 29
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. The inadvertent non-cancellation of a policy when a new policy is taken out.
- C. An overlap in cover between two different types of insurance policy.
- D. A merger between two major insurance companies.
Answer: A,C
NEW QUESTION 30
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 3 years.
- B. 6 years.
- C. 9 years.
- D. 15 years.
Answer: A
NEW QUESTION 31
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To maintain the annual aggregate limit of liability throughout the policy period.
- B. To enable an insurer to charge an additional premium if the warranty is continually breached.
- C. To encourage good risk management by the insured throughout the policy period.
- D. To ensure that underinsurance is avoided at all times.
Answer: C
NEW QUESTION 32
The proximate cause of a loss is best described as the
- A. most dominant cause of the loss.
- B. final peril to cause the loss.
- C. first peril to cause the loss.
- D. most remote cause of the loss.
Answer: A
NEW QUESTION 33
At what stage is insurable interest required for a marine cargo insurance policy?
- A. Throughout the duration of the contract.
- B. At both inception of the policy and at the time of the loss.
- C. At inception of the policy only.
- D. At the time of the loss only.
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. In a consumer insurance policy, a warranty can arise as
- A. an express term.
- B. a continuing warranty.
- C. a basis of the contract clause.
- D. an exception clause.
Answer: A,C
NEW QUESTION 35
Ambiguous terms in a household insurance contract are generally construed against the
- A. insurer due to the ejusdem generis rule.
- B. insurer due to the contra proferentem rule.
- C. policyholder due to the literal rule.
- D. policyholder due to the noscitur a sociis rule.
Answer: B
NEW QUESTION 36
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 may be oral or in writing.
- B. It must be evidenced in documentary form.
- C. It will usually override any implied term which conflicts with it.
- D. It may be implied by conduct.
Answer: A,C
NEW QUESTION 37
How can an agency relationship be best described?
- A. 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.
- B. A person has the authority to act on behalf of another party.
- C. A person has ratified another party's action.
- D. A person has transferred his obligations under a contract to another party.
Answer: B
NEW QUESTION 38
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. Bankruptcy of the principal.
- B. Disclosure of the name of the principal.
- C. Death of the agent.
- D. Bankruptcy of the agent.
Answer: A,C
NEW QUESTION 39
In terms of private motor insurance, a renewal offer can be accepted
- A. by the proposer acting in reliance of the offer.
- B. by any third party.
- C. only by written communication.
- D. only by the proposer personally.
Answer: A
NEW QUESTION 40
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 subrogation action against the manufacturer of the tumble dryer.
- 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 breach of a warranty requiring the burglar alarm to be set.
Answer: B
NEW QUESTION 41
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Apply any terms it would have applied if the misrepresentation had not taken place.
- B. Reduce the claim amount in proportion to the premium it would have charged.
- C. Reject the claim, but maintain the policy.
- D. Avoid the contract, refuse all claims and keep the premium.
Answer: A,B
NEW QUESTION 42
The principle of subrogation prevents a policyholder from profiting from
- A. retaining salvaged property.
- B. assigning abandonment rights to the insurer.
- C. claiming under both his insurance policy and against any negligent third party.
- D. submitting a full claim recovery under more than one insurance policy.
Answer: C
NEW QUESTION 43
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