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  • Total Questions: 52
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  • Total Questions: 52
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CII Examination element of M05 Insurance law Sample Questions:

1. The test of the materiality of facts in an insurance contract is defined according to the opinion of a

A) honest proposer.
B) reasonable person.
C) diligent broker.
D) prudent underwriter.


2. What is the most common for of corporation?

A) Corporation sole.
B) Chartered corporation.
C) Statutory corporation.
D) Registered corporation.


3. 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 seeking medical treatment.
B) The unhygienic washing of the dog bite.
C) The delay in obtaining the correct medical treatment.
D) The original physical injury of the dog bite.


4. 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 collateral condition.
B) A condition precedent to the contract.
C) A suspensive condition.
D) A condition precedent to liability.


5. What are the main objectives of the principle of insurable interest?

A) To reduce physical hazard and to discourage profiteering.
B) To reduce moral hazard and to discourage wagering.
C) To reduce physical hazard and to discourage wagering.
D) To reduce moral hazard and to discourage profiteering.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: D
Question # 3
Answer: D
Question # 4
Answer: D
Question # 5
Answer: B

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