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New CII E05 Dumps & Questions Updated on 2022

NEW QUESTION 21
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. imposes a premium loading.
• C. provides coverage that is more restrictive than that of other insurers.
• D. requires notification of a claim within a very short time period.

Answer: D

 

NEW QUESTION 22
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?

• A. From the date of a breach of warranty.
• B. Where there is a variation in the insured risk.
• C. On submission of a claim.
• D. It does not apply as the duty is to take reasonable care not to make a misrepresentation.

Answer: B

 

NEW QUESTION 23
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 oral or in writing.
• C. It must be evidenced in documentary form.
• D. It may be implied by conduct.

Answer: A,B

 

NEW QUESTION 24
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 his own safety in an accident.
• D. through fear for the safety of another person involved in an accident which he witnessed.

Answer: C

 

NEW QUESTION 25
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 26
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. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
• C. The doctrine of subrogation is excluded from the policy.
• D. Cover is suspended whilst the insurer pursues an action for subrogation.

Answer: B

 

NEW QUESTION 27
The branch of law particularly relevant when handling negligence claims is

• A. constitutional law.
• B. administrative.
• C. civil law.
• D. public law.

Answer: C

 

NEW QUESTION 28
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. a basis of the contract clause.
• C. an express term.
• D. an exception clause.

Answer: B,C

 

NEW QUESTION 29
In what circumstances is abandonment automatic under a marine hull insurance policy?

• A. The insured has performed an action of abandonment.
• B. The constructive total loss of the vessel.
• C. The insured has sent a formal notice of abandonment.
• D. The actual total loss of the vessel.

Answer: D

 

NEW QUESTION 30
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. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
• B. settle the claim and recover its outlay from the insured.
• C. settle the claim and cancel the insurance policy from inception.
• D. avoid the claim automatically due to the breach of the policy condition.

Answer: D

 

NEW QUESTION 31
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as

• A. Liz's independent financial adviser.
• B. a person holding a senior position at Liz's bank.
• C. Liz's husband.
• D. a person holding a dominant position over Liz.

Answer: D

 

NEW QUESTION 32
The proximate cause of a loss is best described as the

• A. most remote cause of the loss.
• B. most dominant cause of the loss.
• C. first peril to cause the loss.
• D. final peril to cause the loss.

Answer: B

 

NEW QUESTION 33
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 tumble dryer is covered by extended warranty insurance.
• B. If the policyholder exaggerates the value of the claim.
• C. If there is a subrogation action against the manufacturer of the tumble dryer.
• D. If there is a breach of a warranty requiring the burglar alarm to be set.

Answer: B

 

NEW QUESTION 34
Ambiguous terms in a household insurance contract are generally construed against the

• A. policyholder due to the literal rule.
• B. insurer due to the contra proferentem rule.
• C. policyholder due to the noscitur a sociis rule.
• D. insurer due to the ejusdem generis rule.

Answer: B

 

NEW QUESTION 35
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. 35% for both cases.
• C. 25% for personal injury cases and 35% for employment tribunal cases.
• D. 50% for both cases.

Answer: C

 

NEW QUESTION 36
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. Death of the agent.
• B. Disclosure of the name of the principal.
• C. Bankruptcy of the principal.
• D. Bankruptcy of the agent.

Answer: A,C

 

NEW QUESTION 37
Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?

• A. The insured only.
• B. The insurer only.
• C. It is shared between the insurer and the insured.
• D. The State

Answer: A

 

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
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. provides insurance where the scope of cover is narrow compared to the premium charged.
• C. does not restrict liability for death or personal injury.
• D. has been individually negotiated and is to the detriment of either one of the parties.

Answer: A

 

NEW QUESTION 40
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 41
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