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CII Insurance law (IL) Sample Questions:
1. A proposer for household insurance completes and submits an online application. When the insurer's website responds with a quotation based on the application, the quotation is most likely to be legally regarded as:
A) a counter offer
B) an invitation to treat
C) an acceptance of an offer
D) an offer
2. Which of the following is true regarding the "principle of subrogation"?
A) It allows the insured to be compensated twice for the same loss
B) It allows the insurer to pursue third parties responsible for the loss
C) It means the insurer is entitled to the premium even if the claim is not paid
D) It prevents the insurer from recovering any costs from a third party
3. As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
A) the misrepresentation was fraudulent.
B) the misrepresentation was innocent.
C) no claim had been submitted or paid.
D) the premium was paid by monthly installments.
4. When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as
A) a first loss policy.
B) a new for old policy.
C) a real statement.
D) an indemnity policy.
5. According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
A) requires notification of a claim within a very short time period.
B) applies a specific exclusion within the policy wording.
C) provides coverage that is more restrictive than that of other insurers.
D) imposes a premium loading.
Solutions:
Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: A |