Free CII E05 Exam Dumps Questions & Answers

A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?

• A.  A condition precedent to liability.
• B.  A collateral condition.
• C.  A condition precedent to the contract.
• D.  A suspensive condition.

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.  Where there is underinsurance.
• C.  Upon the request of any person(s) interested in the buildings.
• D.  When fraud or arson by the insured is suspected.

The proximate cause of a loss is best described as the

• A.  first peril to cause the loss.
• B.  most dominant cause of the loss.
• C.  final peril to cause the loss.
• D.  most remote cause of the loss.

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.  From the date of a breach of warranty.
• C.  On submission of a claim.
• D.  Where there is a variation in the insured risk.

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.  Power of Attorney.
• B.  Trust.
• C.  Lien.
• D.  Coinsurance.