E05 by CII Valid Free Exam Practice Test

Question 1

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 moral hazard and to discourage profiteering. D. To reduce physical hazard and to discourage wagering.

Correct Answer: B

Question 2

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

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

Correct Answer: D

Question 3

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

Correct Answer: D

Question 4

A claimant may possibly recover money transferred under an illegal contract when

A. the legal portion of the contract can be severed from the illega portion. B. both parties to the contract are equal in wrongdoing. C. the contract is against public policy but not substantive law. D. the illegality makes the contract voidable rather than void.

Correct Answer: B

Question 5

At what stage is insurable interest required for a marine cargo insurance policy?

A. At inception of the policy only. B. At the time of the loss only. C. Throughout the duration of the contract. D. At both inception of the policy and at the time of the loss.

Correct Answer: B

Question 6

Ambiguous terms in a household insurance contract are generally construed against the

A. policyholder due to the literal rule. B. insurer due to the ejusdem generis rule. C. insurer due to the contra proferentem rule. D. policyholder due to the noscitur a sociis rule.

Correct Answer: C

CII Examination element of M05 Insurance law - E05 Exam Practice Test