2021 Latest CII E05 Real Exam Dumps PDF [Q20-Q36]

2021 Latest CII E05 Real Exam Dumps PDF

E05 Exam Dumps, E05 Practice Test Questions

NEW QUESTION 20
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of

A. trespass to goods, conversion and nuisance only,
B. trespass to goods and conversion only.
C. trespass to goods, conversion, nuisance and battery.
D. trespass to goods only.

Answer: D

NEW QUESTION 21
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 original physical injury of the dog bite.
C. The delay in obtaining the correct medical treatment.
D. The unhygienic washing of the dog bite.

Answer: B

NEW QUESTION 22
How can an agency relationship be best described?

A. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
B. A person has ratified another party's action.
C. A person has transferred his obligations under a contract to another party.
D. A person has the authority to act on behalf of another party.

Answer: D

NEW QUESTION 23
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer

A. provides coverage that is more restrictive than that of other insurers.
B. requires notification of a claim within a very short time period.
C. imposes a premium loading.
D. applies a specific exclusion within the policy wording.

Answer: B

NEW QUESTION 24
A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to

A. settle the claim and recover its outlay from the insured.
B. settle the claim and cancel the insurance policy from inception.
C. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
D. avoid the claim automatically due to the breach of the policy condition.

Answer: D

NEW QUESTION 25
According to statute law, an unfair term in a consumer insurance contract is defined as one which

A. has been individually negotiated and is to the detriment of either one of the parties.
B. provides insurance where the scope of cover is narrow compared to the premium charged.
C. does not restrict liability for death or personal injury.
D. causes a significant imbalance in the parties' rights to the detriment of the consumer.

Answer: D

NEW QUESTION 26
A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?

A. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
B. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
C. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
D. Cover for both parties would be invalidated as the cover is likely to be a composite policy.

Answer: C

NEW QUESTION 27
Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill's claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill's position under his insurance policy?

A. Bill must return the claim settlement in exchange for the painting.
B. Bill must buy the painting back.
C. Bill may exercise an option to buy the painting back.
D. Bill may keep the claim settlement and also keep the painting.

Answer: C

NEW QUESTION 28
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?

A. It must be evidenced in documentary form.
B. It may be oral or in writing.
C. It will usually override any implied term which conflicts with it.
D. It may be implied by conduct.

Answer: B,C

NEW QUESTION 29
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury

A. as a result of stress or harassment at work.
B. through fear for his own safety in an accident.
C. through fear for the safety of another person involved in an accident which he witnessed.
D. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.

Answer: B

NEW QUESTION 30
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?

A. From the date of a breach of warranty.
B. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
C. Where there is a variation in the insured risk.
D. On submission of a claim.

Answer: C

NEW QUESTION 31
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.

Answer: B

NEW QUESTION 32
Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?

A. It is shared between the insurer and the insured.
B. The State
C. The insurer only.
D. The insured only.

Answer: D

NEW QUESTION 33
The proximate cause of a loss is best described as the

A. most remote cause of the loss.
B. final peril to cause the loss.
C. first peril to cause the loss.
D. most dominant cause of the loss.

Answer: D

NEW QUESTION 34
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?