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CII Insurance law (IL) Sample Questions:
1. Which of the following is true about insurable interest?
A) Insurable interest is only required for life insurance policies
B) The policyholder must have an interest in the property at the time of policy purchase but not at thetime of loss
C) The policyholder must have a financial stake in the property or event insured at the time of loss
D) Insurable interest must always be proven at the time the policy is issued
2. When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
A) From the date of a breach of warranty.
B) Where there is a variation in the insured risk.
C) On submission of a claim.
D) It does not apply as the duty is to take reasonable care not to make a misrepresentation.
3. Which of the following is a feature of an insurance contract under the principle of "utmost good faith"?
A) The insurer must pay all claims, regardless of the terms of the policy.
B) Both parties must agree on the premium amount in advance.
C) The insurer must be transparent about the terms of the policy.
D) The insured must disclose all material facts relevant to the risk.
4. 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) 25% for personal injury cases and 35% for employment tribunal cases.
B) 35% for both cases.
C) 35% for personal injury cases and 25% for employment tribunal cases.
D) 50% for both cases.
5. What is the basis of settlement under a new for old insurance policy if a television is stolen?
A) The replacement cost, less wear and tear.
B) The original cost, less wear and tear.
C) The original cost in full.
D) The replacement cost in full.
Solutions:
Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: A |