[Oct-2021] CII E05 Dumps – Reduce Your Chance of Failure in E05 Exam
To help you achieve your ultimate goal, we suggest the actual CII E05 dumps for your Examination element of M05 Insurance law exam preparation to use as your guideline.
NEW QUESTION 23
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. Avoid the policy ab initio.
- B. Make an ex-gratia payment.
- C. Pay the claim in full.
- D. Reject the claim for breach of warranty.
Answer: C
NEW QUESTION 24
The proximate cause of a loss is best described as the
- A. final peril to cause the loss.
- B. most dominant cause of the loss.
- C. first peril to cause the loss.
- D. most remote cause of the loss.
Answer: B
NEW QUESTION 25
How can an agency relationship be best described?
- A. A person has ratified another party's action.
- B. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
- C. A person has transferred his obligations under a contract to another party.
- D. A person has the authority to act on behalf of another party.
Answer: D
NEW QUESTION 26
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. Statutory authority.
- B. Prescription.
- C. Honest opinion.
- D. Privilege.
- E. Necessity.
Answer: C,D
NEW QUESTION 27
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. not unreasonably reject an insured's claim.
- B. provide reasonable guidance to an insured to help him make a claim.
- C. handle a claims notification within 14 days.
- D. settle a claim promptly once settlement has been agreed.
Answer: A,B,D
NEW QUESTION 28
What are the main objectives of the principle of insurable interest?
- A. To reduce moral hazard and to discourage profiteering.
- B. To reduce moral hazard and to discourage wagering.
- C. To reduce physical hazard and to discourage wagering.
- D. To reduce physical hazard and to discourage profiteering.
Answer: B
NEW QUESTION 29
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 there is a breach of a warranty requiring the burglar alarm to be set.
- B. If the policyholder exaggerates the value of the claim.
- C. If the tumble dryer is covered by extended warranty insurance.
- D. If there is a subrogation action against the manufacturer of the tumble dryer.
Answer: B
NEW QUESTION 30
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The original physical injury of the dog bite.
- B. The delay in seeking medical treatment.
- C. The delay in obtaining the correct medical treatment.
- D. The unhygienic washing of the dog bite.
Answer: A
NEW QUESTION 31
For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?
- A. Disclosure of the name of the principal.
- B. Death of the agent.
- C. Bankruptcy of the principal.
- D. Bankruptcy of the agent.
Answer: B,C
NEW QUESTION 32
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods only.
- B. trespass to goods, conversion, nuisance and battery.
- C. trespass to goods and conversion only.
- D. trespass to goods, conversion and nuisance only,
Answer: A
NEW QUESTION 33
The principle of subrogation prevents a policyholder from profiting from
- A. retaining salvaged property.
- B. assigning abandonment rights to the insurer.
- C. claiming under both his insurance policy and against any negligent third party.
- D. submitting a full claim recovery under more than one insurance policy.
Answer: C
NEW QUESTION 34
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Apply any terms it would have applied if the misrepresentation had not taken place.
- B. Reject the claim, but maintain the policy.
- C. Avoid the contract, refuse all claims and keep the premium.
- D. Reduce the claim amount in proportion to the premium it would have charged.
Answer: A,D
NEW QUESTION 35
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.
Answer: A,B
NEW QUESTION 36
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. Where the building was destroyed by an explosion.
- B. Upon the request of any person(s) interested in the buildings.
- C. When fraud or arson by the insured is suspected.
- D. Where there is underinsurance.
Answer: B,C
NEW QUESTION 37
For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as
- A. a basis of the contract clause.
- B. an exception clause.
- C. an express term.
- D. a continuing warranty.
Answer: A,C
NEW QUESTION 38
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. a person holding a senior position at Liz's bank.
- B. a person holding a dominant position over Liz.
- C. Liz's husband.
- D. Liz's independent financial adviser.
Answer: B
NEW QUESTION 39
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. 35% for personal injury cases and 25% for employment tribunal cases.
- D. 25% for personal injury cases and 35% for employment tribunal cases.
Answer: D
NEW QUESTION 40
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- B. Where there is a variation in the insured risk.
- C. From the date of a breach of warranty.
- D. On submission of a claim.
Answer: B
NEW QUESTION 41
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 a corporation aggregate?
- A. It is answerable to its shareholders or members.
- B. It is an organisation with a separate legal existence to its membership.
- C. It is not treated as a separate legal entity.
- D. It is a legal person representing one official position.
Answer: A,B
NEW QUESTION 42
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To enable an insurer to charge an additional premium if the warranty is continually breached.
- B. To encourage good risk management by the insured throughout the policy period.
- C. To ensure that underinsurance is avoided at all times.
- D. To maintain the annual aggregate limit of liability throughout the policy period.
Answer: B
NEW QUESTION 43
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