CII E05 Test Engine Practice Test Questions, Exam Dumps
100% Free E05 Daily Practice Exam With 52 Questions
NEW QUESTION 14
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 constructive total loss of the vessel.
- D. The actual total loss of the vessel.
Answer: D
NEW QUESTION 15
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To ensure that underinsurance is avoided at all times.
- B. To maintain the annual aggregate limit of liability throughout the policy period.
- C. To encourage good risk management by the insured throughout the policy period.
- D. To enable an insurer to charge an additional premium if the warranty is continually breached.
Answer: C
NEW QUESTION 16
The proximate cause of a loss is best described as the
- A. most remote cause of the loss.
- B. first peril to cause the loss.
- C. final peril to cause the loss.
- D. most dominant cause of the loss.
Answer: D
NEW QUESTION 17
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. through fear for the safety of another person involved in an accident which he witnessed.
- B. as a result of stress or harassment at work.
- C. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
- D. through fear for his own safety in an accident.
Answer: D
NEW QUESTION 18
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. Where the building was destroyed by an explosion.
- C. Upon the request of any person(s) interested in the buildings.
- D. When fraud or arson by the insured is suspected.
Answer: C,D
NEW QUESTION 19
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 condition precedent to the contract.
- B. A condition precedent to liability.
- C. A suspensive condition.
- D. A collateral condition.
Answer: B
NEW QUESTION 20
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 subsequent to liability.
- B. statute.
- C. a condition precedent to liability.
- D. tort.
Answer: B
NEW QUESTION 21
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 22
Insurance agencies are usually created by way of
- A. deed of agreement.
- B. implied agreement.
- C. express agreement.
- D. unilateral agreement.
Answer: C
NEW QUESTION 23
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. Reject the claim, but maintain the policy.
- B. Apply any terms it would have applied if the misrepresentation had not taken place.
- C. Reduce the claim amount in proportion to the premium it would have charged.
- D. Avoid the contract, refuse all claims and keep the premium.
Answer: B,C
NEW QUESTION 24
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. signs and submits the completed proposal form to the insurer.
- B. assigns the contract to a third party.
- C. forms the contract with the insurer.
- D. dies and his estate submits a claim to the insurer.
Answer: C
NEW QUESTION 25
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. The insurer at all times.
- B. Paul as it is a consumer contract.
- C. Both the insurer and Paul at different times.
- D. No one as Tim is not a party to the insurance contract.
Answer: A
NEW QUESTION 26
What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?
- A. 35% for personal injury cases and 25% for employment tribunal cases.
- B. 50% for both cases.
- C. 35% for both cases.
- D. 25% for personal injury cases and 35% for employment tribunal cases.
Answer: D
NEW QUESTION 27
The branch of law particularly relevant when handling negligence claims is
- A. public law.
- B. civil law.
- C. constitutional law.
- D. administrative.
Answer: B
NEW QUESTION 28
The principle of subrogation prevents a policyholder from profiting from
- A. claiming under both his insurance policy and against any negligent third party.
- B. submitting a full claim recovery under more than one insurance policy.
- C. retaining salvaged property.
- D. assigning abandonment rights to the insurer.
Answer: A
NEW QUESTION 29
In terms of private motor insurance, a renewal offer can be accepted
- A. only by the proposer personally.
- B. only by written communication.
- C. by any third party.
- D. by the proposer acting in reliance of the offer.
Answer: D
NEW QUESTION 30
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- 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 doctrine of subrogation is excluded from the policy.
Answer: C
NEW QUESTION 31
A claimant may possibly recover money transferred under an illegal contract when
- A. the contract is against public policy but not substantive law.
- B. the illegality makes the contract voidable rather than void.
- C. the legal portion of the contract can be severed from the illega portion.
- D. both parties to the contract are equal in wrongdoing.
Answer: D
NEW QUESTION 32
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 must be evidenced in documentary form.
- D. It may be oral or in writing.
Answer: A,D
NEW QUESTION 33
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