Free CII M05 Exam Dumps Questions & Answers

Which of the following is a characteristic of a contract of insurance?

• A.  It requires both parties to meet in person
• B.  It must be written in a formal language
• C.  It is always a contract of adhesion
• D.  It involves a promise of a return on investment

Why may an insurer insert a continuing warranty into an insurance policy?

• A.  To encourage good risk management by the insured throughout the policy period.
• B.  To enable an insurer to charge an additional premium if the warranty is continually breached.
• C.  To ensure that underinsurance is avoided at all times.
• D.  To maintain the annual aggregate limit of liability throughout the policy period.

What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

• A.  It helps consumers resolve complaints with their insurers
• B.  It provides legal advice to insurers
• C.  It issues licenses to insurance companies
• D.  It regulates the pricing of insurance products

In terms of private motor insurance, a renewal offer can be accepted

• A.  by any third party.
• B.  by the proposer acting in reliance of the offer.
• C.  only by written communication.
• D.  only by the proposer personally.

John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?

• A.  Immediately, but only if the diagnosis is terminal.
• B.  He does not need to disclose this.
• C.  Immediately, irrespective of prognosis.
• D.  At the date of the next premium payment.