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CII Insurance law (IL) Sample Questions:
1. Which of the following is an example of a condition precedent in an insurance contract?
A) The insurer must provide coverage for accidental damage
B) The insured must maintain the insured item in good condition
C) The insurer is required to pay claims for theft
D) The insured must pay the premium
2. 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.
3. Which of the following best defines an insurance contract?
A) A contract in which one party agrees to indemnify another against specified risks in exchange for premiums.
B) A contract for the protection of physical property only.
C) A contract where the insurer assumes no liability.
D) A contract that only applies to personal property insurance.
4. In terms of private motor insurance, a renewal offer can be accepted
A) by any third party.
B) by the proposer acting in reliance of the offer.
C) only by the proposer personally.
D) only by written communication.
5. What does the Consumer Insurance (Disclosure and Representations) Act 2012 require from consumers applying for insurance?
A) Consumers must disclose all material facts honestly and accurately.
B) Consumers must answer questions about their past claims history.
C) Consumers must choose an insurer based on premium prices alone.
D) Consumers are required to pay for claims made during the policy term.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: A |
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