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CII Insurance law (IL) Exam Sample Questions (Q21-Q26):
NEW QUESTION # 21
A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a
- A. moral hazard.
- B. fundamental risk.
- C. physical hazard.
- D. pure risk.
Answer: C
NEW QUESTION # 22
What does the Consumer Insurance (Disclosure and Representations) Act 2012 require from consumers applying for insurance?
- A. Consumers must disclose all material facts honestly and accurately.
- B. Consumers are required to pay for claims made during the policy term.
- C. Consumers must choose an insurer based on premium prices alone.
- D. Consumers must answer questions about their past claims history.
Answer: A
Explanation:
Under the Consumer Insurance (Disclosure and Representations) Act 2012, consumers are required to disclose material facts that could affect the insurer's decision to provide coverage. However, unlike the previous law, it does not require consumers to disclose every fact, but only material facts.
NEW QUESTION # 23
Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill's claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill's position under his insurance policy?
- A. Bill must buy the painting back.
- B. Bill may keep the claim settlement and also keep the painting.
- C. Bill must return the claim settlement in exchange for the painting.
- D. Bill may exercise an option to buy the painting back.
Answer: D
NEW QUESTION # 24
The principle of indemnity is the
- A. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
- B. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
- C. obligation of the insurer to provide a maximum sum insured or limit of liability.
- D. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
Answer: A
NEW QUESTION # 25
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 implied by conduct.
- C. It must be evidenced in documentary form.
- D. It may be oral or in writing.
Answer: A,D
NEW QUESTION # 26
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