E05 Questions - Truly Beneficial For Your CII Exam (Updated 52 Questions)
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NEW QUESTION # 10
How can an agency relationship be best described?
- A. 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.
- B. A person has the authority to act on behalf of another party.
- C. A person has ratified another party's action.
- D. A person has transferred his obligations under a contract to another party.
Answer: B
NEW QUESTION # 11
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods, conversion, nuisance and battery.
- B. trespass to goods, conversion and nuisance only,
- C. trespass to goods only.
- D. trespass to goods and conversion only.
Answer: C
NEW QUESTION # 12
Ambiguous terms in a household insurance contract are generally construed against the
- A. insurer due to the contra proferentem rule.
- B. policyholder due to the literal rule.
- C. policyholder due to the noscitur a sociis rule.
- D. insurer due to the ejusdem generis rule.
Answer: A
NEW QUESTION # 13
In what circumstances is abandonment automatic under a marine hull insurance policy?
- A. The insured has sent a formal notice of abandonment.
- B. The insured has performed an action of abandonment.
- C. The actual total loss of the vessel.
- D. The constructive total loss of the vessel.
Answer: C
NEW QUESTION # 14
What are the main objectives of the principle of insurable interest?
- A. To reduce physical hazard and to discourage profiteering.
- B. To reduce physical hazard and to discourage wagering.
- C. To reduce moral hazard and to discourage wagering.
- D. To reduce moral hazard and to discourage profiteering.
Answer: C
NEW QUESTION # 15
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. Bankruptcy of the agent.
- C. Death of the agent.
- D. Bankruptcy of the principal.
Answer: C,D
NEW QUESTION # 16
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. statute.
- B. a condition subsequent to liability.
- C. tort.
- D. a condition precedent to liability.
Answer: A
NEW QUESTION # 17
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. as a result of stress or harassment at work.
- C. through fear for the safety of another person involved in an accident which he witnessed.
- 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 # 18
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
- A. Lien.
- B. Coinsurance.
- C. Power of Attorney.
- D. Trust.
Answer: D
NEW QUESTION # 19
Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
- A. £7,500,000
- B. £10,000,000
- C. £5,000,000
- D. £9,000,000
Answer: D
NEW QUESTION # 20
What is the most common for of corporation?
- A. Registered corporation.
- B. Statutory corporation.
- C. Corporation sole.
- D. Chartered corporation.
Answer: A
NEW QUESTION # 21
A breach of warranty under the general law of contract legally entitles an injured party to
- A. avoid the contract ab initio.
- B. obtain specific performance.
- C. avoid the contract from the date of the breach.
- D. claim damages.
Answer: D
NEW QUESTION # 22
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. The insured only.
- B. The insurer only.
- C. The State
- D. It is shared between the insurer and the insured.
Answer: A
NEW QUESTION # 23
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. Paul as it is a consumer contract.
- B. The insurer at all times.
- C. No one as Tim is not a party to the insurance contract.
- D. Both the insurer and Paul at different times.
Answer: B
NEW QUESTION # 24
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. 35% for both cases.
- B. 50% 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 # 25
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