Practice E05 Questions With Certification guide Q&A from Training Expert DumpsTests
Free CII E05 Test Practice Test Questions Exam Dumps
NEW QUESTION # 13
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 continuing warranty.
- B. an express term.
- C. an exception clause.
- D. a basis of the contract clause.
Answer: B,D
NEW QUESTION # 14
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- B. has been individually negotiated and is to the detriment of either one of the parties.
- C. does not restrict liability for death or personal injury.
- D. provides insurance where the scope of cover is narrow compared to the premium charged.
Answer: A
NEW QUESTION # 15
A claimant may possibly recover money transferred under an illegal contract when
- A. the illegality makes the contract voidable rather than void.
- B. the legal portion of the contract can be severed from the illega portion.
- C. both parties to the contract are equal in wrongdoing.
- D. the contract is against public policy but not substantive law.
Answer: C
NEW QUESTION # 16
The branch of law particularly relevant when handling negligence claims is
- A. administrative.
- B. public law.
- C. civil law.
- D. constitutional law.
Answer: C
NEW QUESTION # 17
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. When fraud or arson by the insured is suspected.
- D. Upon the request of any person(s) interested in the buildings.
Answer: C,D
NEW QUESTION # 18
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. 25% for personal injury cases and 35% for employment tribunal cases.
- B. 35% for both cases.
- C. 35% for personal injury cases and 25% for employment tribunal cases.
- D. 50% for both cases.
Answer: A
NEW QUESTION # 19
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. provide reasonable guidance to an insured to help him make a claim.
- B. not unreasonably reject an insured's claim.
- C. handle a claims notification within 14 days.
- D. settle a claim promptly once settlement has been agreed.
Answer: A,B,D
NEW QUESTION # 20
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. Case law.
- B. Official law reports.
- C. International treaties.
- D. Legislation.
Answer: A,D
NEW QUESTION # 21
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 doctrine of subrogation is excluded from the policy.
- C. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- D. Cover is suspended whilst the insurer pursues an action for subrogation.
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. What are the characteristics of a corporation aggregate?
- A. It is a legal person representing one official position.
- B. It is answerable to its shareholders or members.
- C. It is not treated as a separate legal entity.
- D. It is an organisation with a separate legal existence to its membership.
Answer: B,D
NEW QUESTION # 23
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
- A. £6,000
- B. £3,000
- C. £15,000
- D. £5,000
Answer: D
NEW QUESTION # 24
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
- A. imposes a premium loading.
- B. requires notification of a claim within a very short time period.
- C. provides coverage that is more restrictive than that of other insurers.
- D. applies a specific exclusion within the policy wording.
Answer: B
NEW QUESTION # 25
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. An overlap in cover between two different types of insurance policy.
- B. A merger between two major insurance companies.
- C. The inadvertent non-cancellation of a policy when a new policy is taken out.
- D. A deliberate attempt to obtain the proceeds of two policies.
Answer: A,D
NEW QUESTION # 26
What are the main objectives of the principle of insurable interest?
- A. To reduce moral hazard and to discourage wagering.
- B. To reduce physical hazard and to discourage wagering.
- C. To reduce physical hazard and to discourage profiteering.
- D. To reduce moral hazard and to discourage profiteering.
Answer: A
NEW QUESTION # 27
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. Privilege.
- B. Prescription.
- C. Necessity.
- D. Statutory authority.
- E. Honest opinion.
Answer: A,E
NEW QUESTION # 28
Insurance agencies are usually created by way of
- A. unilateral agreement.
- B. deed of agreement.
- C. implied agreement.
- D. express agreement.
Answer: D
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 may be oral or in writing.
- C. It will usually override any implied term which conflicts with it.
- D. It must be evidenced in documentary form.
Answer: B,C
NEW QUESTION # 30
What is the most common for of corporation?
- A. Registered corporation.
- B. Statutory corporation.
- C. Corporation sole.
- D. Chartered corporation.
Answer: A
NEW QUESTION # 31
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Make an ex-gratia payment.
- B. Reject the claim for breach of warranty.
- C. Pay the claim in full.
- D. Avoid the policy ab initio.
Answer: C
NEW QUESTION # 32
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. No one as Tim is not a party to the insurance contract.
- B. Both the insurer and Paul at different times.
- C. The insurer at all times.
- D. Paul as it is a consumer contract.
Answer: C
NEW QUESTION # 33
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