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CII Insurance law (IL) Sample Questions:
1. In accordance with the principle of good faith, which facts must a potential policyholder disclose to the insurer when applying for insurance?
A) Any facts which are in the public domain.
B) Only those facts considered likely to reduce the cost of cover
C) Any facts which are considered material to the risk.
D) Any facts of law.
2. What is the primary purpose of the Duty of Disclosure in an insurance contract?
A) To ensure the insurer is able to assess the risk involved in underwriting the policy
B) To allow the policyholder to choose the terms of coverage
C) To protect the insurer from financial instability
D) To ensure that both parties understand the terms of the contract
3. At what stage is insurable interest required for a marine cargo insurance policy?
A) At both inception of the policy and at the time of the loss.
B) Throughout the duration of the contract.
C) At the time of the loss only.
D) At inception of the policy only.
4. As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
A) the premium was paid by monthly installments.
B) the misrepresentation was innocent.
C) the misrepresentation was fraudulent.
D) no claim had been submitted or paid.
5. Which of the following regulatory bodies oversees the conduct of insurance firms in the UK?
A) Bank of England
B) Prudential Regulation Authority (PRA)
C) Financial Conduct Authority (FCA)
D) Insurance Ombudsman Service
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: C |
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