E05 by CII Actual Free Exam Q&As

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 an express term in reaching or recording an agreement?

A. It may be oral or in writing. B. It will usually override any implied term which conflicts with it. C. It must be evidenced in documentary form. D. It may be implied by conduct.

Discussion 0

Correct Answer: A,B Vote an answer

Question 2

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

Discussion 0

Correct Answer: B Vote an answer

Question 3

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 for both parties would be invalidated 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 would be maintained in full for the innocent party as the cover is likely to be a composite policy.

Discussion 0

Correct Answer: A Vote an answer

Question 4

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. Necessity. C. Honest opinion. D. Statutory authority. E. Prescription.

Discussion 0

Correct Answer: A,C Vote an answer

Question 5

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. A merger between two major insurance companies. B. An overlap in cover between two different types of insurance policy. C. A deliberate attempt to obtain the proceeds of two policies. D. The inadvertent non-cancellation of a policy when a new policy is taken out.

Discussion 0

Correct Answer: B,C Vote an answer

Question 6

A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?

A. Power of Attorney. B. Coinsurance. C. Lien. D. Trust.

Discussion 0

Correct Answer: D Vote an answer

CII Examination element of M05 Insurance law - E05 Exam Practice Test