Get up-to-date Real Exam Questions for E05 UPDATED [2022]
Pass CII E05 Exam in First Attempt Guaranteed
NEW QUESTION 28
Which divisional court of the High Court includes a Commercial Court?
- A. Queen's Bench Division.
- B. Partnership Division.
- C. Chancery Division.
- D. Family Division.
Answer: C
NEW QUESTION 29
Ambiguous terms in a household insurance contract are generally construed against the
- A. policyholder due to the noscitur a sociis rule.
- B. policyholder due to the literal rule.
- C. insurer due to the ejusdem generis rule.
- D. insurer due to the contra proferentem rule.
Answer: D
NEW QUESTION 30
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. 50% for both cases.
- B. 35% for both cases.
- C. 25% for personal injury cases and 35% for employment tribunal cases.
- D. 35% for personal injury cases and 25% for employment tribunal cases.
Answer: C
NEW QUESTION 31
The proximate cause of a loss is best described as the
- A. final peril to cause the loss.
- B. most remote cause of the loss.
- C. most dominant cause of the loss.
- D. first peril to cause the loss.
Answer: C
NEW QUESTION 32
A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under
- A. tort.
- B. a condition precedent to liability.
- C. a condition subsequent to liability.
- D. statute.
Answer: D
NEW QUESTION 33
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. It is shared between the insurer and the insured.
- B. The State
- C. The insured only.
- D. The insurer only.
Answer: C
NEW QUESTION 34
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Make an ex-gratia payment.
- B. Avoid the policy ab initio.
- C. Reject the claim for breach of warranty.
- D. Pay the claim in full.
Answer: D
NEW QUESTION 35
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. provides insurance where the scope of cover is narrow compared to the premium charged.
- B. has been individually negotiated and is to the detriment of either one of the parties.
- C. does not restrict liability for death or personal injury.
- D. causes a significant imbalance in the parties' rights to the detriment of the consumer.
Answer: D
NEW QUESTION 36
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must
- A. provide reasonable guidance to an insured to help him make a claim.
- B. settle a claim promptly once settlement has been agreed.
- C. handle a claims notification within 14 days.
- D. not unreasonably reject an insured's claim.
Answer: A,B,D
NEW QUESTION 37
For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?
- A. Upon the request of any person(s) interested in the buildings.
- B. Where there is underinsurance.
- C. When fraud or arson by the insured is suspected.
- D. Where the building was destroyed by an explosion.
Answer: A,C
NEW QUESTION 38
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. dies and his estate submits a claim to the insurer.
- B. signs and submits the completed proposal form to the insurer.
- C. assigns the contract to a third party.
- D. forms the contract with the insurer.
Answer: D
NEW QUESTION 39
As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
- A. the misrepresentation was fraudulent.
- B. the premium was paid by monthly installments.
- C. the misrepresentation was innocent.
- D. no claim had been submitted or paid.
Answer: C
NEW QUESTION 40
What is the most common for of corporation?
- A. Registered corporation.
- B. Chartered corporation.
- C. Corporation sole.
- D. Statutory corporation.
Answer: A
NEW QUESTION 41
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. No one as Tim is not a party to the insurance contract.
- B. Both the insurer and Paul at different times.
- C. Paul as it is a consumer contract.
- D. The insurer at all times.
Answer: D
NEW QUESTION 42
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
- A. £3,000
- B. £15,000
- C. £5,000
- D. £6,000
Answer: C
NEW QUESTION 43
What are the main objectives of the principle of insurable interest?
- A. To reduce physical hazard and to discourage wagering.
- B. To reduce moral hazard and to discourage profiteering.
- C. To reduce physical hazard and to discourage profiteering.
- D. To reduce moral hazard and to discourage wagering.
Answer: D
NEW QUESTION 44
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. Liz's husband.
- C. a person holding a senior position at Liz's bank.
- D. a person holding a dominant position over Liz.
Answer: D
NEW QUESTION 45
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. through fear for his own safety in an accident.
- B. through fear for the safety of another person involved in an accident which he witnessed.
- C. as a result of stress or harassment at work.
- D. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
Answer: A
NEW QUESTION 46
A claimant may possibly recover money transferred under an illegal contract when
- A. the contract is against public policy but not substantive law.
- B. the illegality makes the contract voidable rather than void.
- C. both parties to the contract are equal in wrongdoing.
- D. the legal portion of the contract can be severed from the illega portion.
Answer: C
NEW QUESTION 47
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To ensure that underinsurance is avoided at all times.
- B. To enable an insurer to charge an additional premium if the warranty is continually breached.
- C. To encourage good risk management by the insured throughout the policy period.
- D. To maintain the annual aggregate limit of liability throughout the policy period.
Answer: C
NEW QUESTION 48
......
CII E05 Study Guide Archives : https://www.dumps4pdf.com/E05-valid-braindumps.html
Pass E05 Exam Latest Practice Questions: https://drive.google.com/open?id=1ESyP7blx2DV5eOfOvMKnGzdeLBBTmXe4