Exam CII M05 Simulations - M05 Training Pdf
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CII Insurance law (IL) Exam Sample Questions (Q55-Q60):
NEW QUESTION # 55
Which of the following is not a typical requirement for the formation of an insurance contract?
- A. An offer to insure
- B. An acceptance of the offer
- C. The payment of a premium.
- D. The disclosure of a medical history
Answer: D
Explanation:
The disclosure of a medical history
Explanation: While disclosure of material facts, such as medical history, is crucial under the principle of utmost good faith, it isnotarequirementfor the formation of an insurance contract. The core requirements are an offer, acceptance, and consideration (premium).
NEW QUESTION # 56
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. A merger between two major insurance companies.
- C. An overlap in cover between two different types of insurance policy.
- D. A deliberate attempt to obtain the proceeds of two policies.
Answer: C,D
NEW QUESTION # 57
What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?
- A. It issues licenses to insurance companies
- B. It provides legal advice to insurers
- C. It regulates the pricing of insurance products
- D. It helps consumers resolve complaints with their insurers
Answer: D
Explanation:
The Financial Ombudsman Service (FOS) is an independent body that helps consumers resolve disputes with financial services, including insurance companies. It provides a neutral mechanism for dispute resolution.
NEW QUESTION # 58
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 of law.
- B. Any facts which are in the public domain.
- C. Only those facts considered likely to reduce the cost of cover
- D. Any facts which are considered material to the risk.
Answer: D
NEW QUESTION # 59
Which of the following is a characteristic of a contract of insurance?
- A. It is always a contract of adhesion
- B. It must be written in a formal language
- C. It involves a promise of a return on investment
- D. It requires both parties to meet in person
Answer: A
Explanation:
A contract of insurance is often considered a contract of adhesion, meaning that it is typically drafted by the insurer and accepted by the policyholder without the ability to negotiate terms.
NEW QUESTION # 60
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