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CII Examination element of M05 Insurance law Sample Questions:
1. 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 deliberate attempt to obtain the proceeds of two policies.
B) An overlap in cover between two different types of insurance policy.
C) A merger between two major insurance companies.
D) The inadvertent non-cancellation of a policy when a new policy is taken out.
2. What is the intended purpose of a subrogation waiver clause in an insurance po
A) The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
B) The doctrine of subrogation is excluded from the policy.
C) The insured has a duty to ensure that the insurer's subrogation rights are maintained.
D) Cover is suspended whilst the insurer pursues an action for subrogation.
3. The principle of subrogation prevents a policyholder from profiting from
A) assigning abandonment rights to the insurer.
B) submitting a full claim recovery under more than one insurance policy.
C) retaining salvaged property.
D) claiming under both his insurance policy and against any negligent third party.
4. A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
A) If the tumble dryer is covered by extended warranty insurance.
B) If there is a breach of a warranty requiring the burglar alarm to be set.
C) If there is a subrogation action against the manufacturer of the tumble dryer.
D) If the policyholder exaggerates the value of the claim.
5. In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
A) as a result of stress or harassment at work.
B) as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
C) through fear for the safety of another person involved in an accident which he witnessed.
D) through fear for his own safety in an accident.
Solutions:
| Question # 1 Answer: A,B | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |
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