E05 PDF Dumps Real 2022 Recently Updated Questions
Released CII E05 Updated Questions PDF
NEW QUESTION 29
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 implied by conduct.
- B. It will usually override any implied term which conflicts with it.
- C. It must be evidenced in documentary form.
- D. It may be oral or in writing.
Answer: B,D
NEW QUESTION 30
A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?
- A. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
- B. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
- C. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
- D. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
Answer: A
NEW QUESTION 31
The principle of subrogation prevents a policyholder from profiting from
- A. retaining salvaged property.
- B. submitting a full claim recovery under more than one insurance policy.
- C. claiming under both his insurance policy and against any negligent third party.
- D. assigning abandonment rights to the insurer.
Answer: C
NEW QUESTION 32
What are the main objectives of the principle of insurable interest?
- A. To reduce physical hazard and to discourage wagering.
- B. To reduce moral hazard and to discourage wagering.
- C. To reduce physical hazard and to discourage profiteering.
- D. To reduce moral hazard and to discourage profiteering.
Answer: B
NEW QUESTION 33
Which divisional court of the High Court includes a Commercial Court?
- A. Queen's Bench Division.
- B. Chancery Division.
- C. Family Division.
- D. Partnership Division.
Answer: B
NEW QUESTION 34
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 the policyholder exaggerates the value of the claim.
- B. If there is a subrogation action against the manufacturer of the tumble dryer.
- C. If there is a breach of a warranty requiring the burglar alarm to be set.
- D. If the tumble dryer is covered by extended warranty insurance.
Answer: A
NEW QUESTION 35
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. statute.
- B. a condition subsequent to liability.
- C. a condition precedent to liability.
- D. tort.
Answer: A
NEW QUESTION 36
As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
- A. the misrepresentation was fraudulent.
- B. the misrepresentation was innocent.
- C. no claim had been submitted or paid.
- D. the premium was paid by monthly installments.
Answer: B
NEW QUESTION 37
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 38
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. The inadvertent non-cancellation of a policy when a new policy is taken out.
- B. A deliberate attempt to obtain the proceeds of two policies.
- C. A merger between two major insurance companies.
- D. An overlap in cover between two different types of insurance policy.
Answer: B,D
NEW QUESTION 39
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. Avoid the contract, refuse all claims and keep the premium.
- C. Apply any terms it would have applied if the misrepresentation had not taken place.
- D. Reduce the claim amount in proportion to the premium it would have charged.
Answer: C,D
NEW QUESTION 40
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. handle a claims notification within 14 days.
- B. settle a claim promptly once settlement has been agreed.
- C. provide reasonable guidance to an insured to help him make a claim.
- D. not unreasonably reject an insured's claim.
Answer: B,C,D
NEW QUESTION 41
Insurance agencies are usually created by way of
- A. express agreement.
- B. deed of agreement.
- C. unilateral agreement.
- D. implied agreement.
Answer: A
NEW QUESTION 42
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 43
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 stress or harassment at work.
- B. through fear for the safety of another person involved in an accident which he witnessed.
- 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 44
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. No one as Tim is not a party to the insurance contract.
- D. The insurer at all times.
Answer: D
NEW QUESTION 45
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