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CII Examination element of M05 Insurance law Sample Questions:
1. The principle of subrogation prevents a policyholder from profiting from
A) retaining salvaged property.
B) claiming under both his insurance policy and against any negligent third party.
C) assigning abandonment rights to the insurer.
D) submitting a full claim recovery under more than one insurance policy.
2. In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
A) dies and his estate submits a claim to the insurer.
B) assigns the contract to a third party.
C) signs and submits the completed proposal form to the insurer.
D) forms the contract with the insurer.
3. 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.
4. When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
A) trespass to goods, conversion, nuisance and battery.
B) trespass to goods, conversion and nuisance only,
C) trespass to goods and conversion only.
D) trespass to goods only.
5. Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
A) Both the insurer and Paul at different times.
B) No one as Tim is not a party to the insurance contract.
C) The insurer at all times.
D) Paul as it is a consumer contract.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |
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