Examination element of M05 Insurance law (E05) Free Practice Test

Question 1

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 not treated as a separate legal entity.

C. It is answerable to its shareholders or members.

D. It is an organisation with a separate legal existence to its membership.

Correct Answer: C,D

Question 2

The branch of law particularly relevant when handling negligence claims is

A. administrative.

B. public law.

C. civil law.

D. constitutional law.

Correct Answer: C

Question 3

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 cancel the insurance policy from inception.

C. avoid the claim automatically due to the breach of the policy condition.

D. settle the claim and recover its outlay from the insured.

Correct Answer: C

Question 4

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.

Correct Answer: B

Question 5

Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?

A. The delay in seeking medical treatment.

B. The unhygienic washing of the dog bite.

C. The delay in obtaining the correct medical treatment.

D. The original physical injury of the dog bite.

Correct Answer: D

Question 6

In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer

A. forms the contract with the insurer.

B. dies and his estate submits a claim to the insurer.

C. signs and submits the completed proposal form to the insurer.

D. assigns the contract to a third party.

Correct Answer: A

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CII Examination element of M05 Insurance law (E05) Free Practice Test