Examination element of M05 Insurance law

Question 1

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

A. The insured has performed an action of abandonment.

B. The actual total loss of the vessel.

C. The insured has sent a formal notice of abandonment.

D. The constructive total loss of the vessel.

Correct Answer: B

Question 2

What is the most common for of corporation?

A. Registered corporation.

B. Corporation sole.

C. Statutory corporation.

D. Chartered corporation.

Correct Answer: A

Question 3

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

A. assigns the contract to a third party.

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

C. forms the contract with the insurer.

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

Correct Answer: C

Question 4

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

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

D. settle the claim and cancel the insurance policy from inception.

Correct Answer: B

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. The inadvertent non-cancellation of a policy when a new policy is taken out.

C. A deliberate attempt to obtain the proceeds of two policies.

D. An overlap in cover between two different types of insurance policy.

Correct Answer: C,D

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

Latest Update

Useful Links

Contact Us