[2022] Use Valid New Free E05 Exam Dumps & Answers
E05 Braindumps PDF, CII E05 Exam Cram
NEW QUESTION 13
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 suspensive condition.
- B. A condition precedent to the contract.
- C. A condition precedent to liability.
- D. A collateral condition.
Answer: C
NEW QUESTION 14
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?
- A. It must be evidenced in documentary form.
- B. It will usually override any implied term which conflicts with it.
- C. It may be implied by conduct.
- D. It may be oral or in writing.
Answer: B,D
NEW QUESTION 15
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must
- A. handle a claims notification within 14 days.
- B. provide reasonable guidance to an insured to help him make a claim.
- C. settle a claim promptly once settlement has been agreed.
- D. not unreasonably reject an insured's claim.
Answer: B,C,D
NEW QUESTION 16
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. prudent underwriter.
- B. reasonable person.
- C. honest proposer.
- D. diligent broker.
Answer: A
NEW QUESTION 17
Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill's claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill's position under his insurance policy?
- A. Bill must buy the painting back.
- B. Bill may exercise an option to buy the painting back.
- C. Bill may keep the claim settlement and also keep the painting.
- D. Bill must return the claim settlement in exchange for the painting.
Answer: B
NEW QUESTION 18
In terms of private motor insurance, a renewal offer can be accepted
- A. only by the proposer personally.
- B. only by written communication.
- C. by any third party.
- D. by the proposer acting in reliance of the offer.
Answer: D
NEW QUESTION 19
What is the most common for of corporation?
- A. Statutory corporation.
- B. Corporation sole.
- C. Registered corporation.
- D. Chartered corporation.
Answer: C
NEW QUESTION 20
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Make an ex-gratia payment.
- B. Avoid the policy ab initio.
- C. Pay the claim in full.
- D. Reject the claim for breach of warranty.
Answer: C
NEW QUESTION 21
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. On submission of a claim.
- C. From the date of a breach of warranty.
- D. Where there is a variation in the insured risk.
Answer: D
NEW QUESTION 22
For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?
- A. The inadvertent non-cancellation of a policy when a new policy is taken out.
- B. An overlap in cover between two different types of insurance policy.
- C. A merger between two major insurance companies.
- D. A deliberate attempt to obtain the proceeds of two policies.
Answer: B,D
NEW QUESTION 23
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The delay in obtaining the correct medical treatment.
- B. The unhygienic washing of the dog bite.
- C. The original physical injury of the dog bite.
- D. The delay in seeking medical treatment.
Answer: C
NEW QUESTION 24
A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
- A. If there is a breach of a warranty requiring the burglar alarm to be set.
- B. If there is a subrogation action against the manufacturer of the tumble dryer.
- C. If the tumble dryer is covered by extended warranty insurance.
- D. If the policyholder exaggerates the value of the claim.
Answer: D
NEW QUESTION 25
The proximate cause of a loss is best described as the
- A. final peril to cause the loss.
- B. first peril to cause the loss.
- C. most dominant cause of the loss.
- D. most remote cause of the loss.
Answer: C
NEW QUESTION 26
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Apply any terms it would have applied if the misrepresentation had not taken place.
- B. Reduce the claim amount in proportion to the premium it would have charged.
- C. Reject the claim, but maintain the policy.
- D. Avoid the contract, refuse all claims and keep the premium.
Answer: A,B
NEW QUESTION 27
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. provides insurance where the scope of cover is narrow compared to the premium charged.
- B. has been individually negotiated and is to the detriment of either one of the parties.
- C. does not restrict liability for death or personal injury.
- D. causes a significant imbalance in the parties' rights to the detriment of the consumer.
Answer: D
NEW QUESTION 28
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