Free CII M05 Exam Dumps Questions & Answers

Under the provisions of the Contracts (Rights of Third Parties) Act 1999, the right to enforce a contractual term arises if a third party.

• A.  is the agent who arranged the contract.
• B.  is one of a general class of persons identified in the contract as benefitting from the contract.
• C.  appoints an agent to carry out the contract provisions.
• D.  proves that the parties to the contract intended to limit his rights.

According to statute law, an unfair term in a consumer insurance contract is defined as one which

• A.  has been individually negotiated and is to the detriment of either one of the parties.
• B.  causes a significant imbalance in the parties' rights to the detriment of the consumer.
• C.  provides insurance where the scope of cover is narrow compared to the premium charged.
• D.  does not restrict liability for death or personal injury.

Which of the following is an example of a condition precedent in an insurance contract?

• A.  The insured's duty to disclose any material changes in their circumstances
• B.  The insurer's requirement to pay claims within a specific period after notification
• C.  A policyholder's obligation to make premium payments
• D.  A policyholder's agreement to not engage in fraudulent behavior

At what stage is insurable interest required for a marine cargo insurance policy?

• A.  Throughout the duration of the contract.
• B.  At the time of the loss only.
• C.  At inception of the policy only.
• D.  At both inception of the policy and at the time of the loss.

John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging £6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

• A.  £6,000
• B.  £5,000
• C.  £15,000
• D.  £3,000