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CII Insurance law (IL) Exam Sample Questions (Q43-Q48):
NEW QUESTION # 43
In what circumstances is abandonment automatic under a marine hull insurance policy?
- A. The constructive total loss of the vessel.
- B. The insured has performed an action of abandonment.
- C. The actual total loss of the vessel.
- D. The insured has sent a formal notice of abandonment.
Answer: C
NEW QUESTION # 44
If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of
- A. good faith.
- B. subrogation.
- C. contribution.
- D. indemnity.
Answer: D
NEW QUESTION # 45
When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?
- A. They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.
- B. They will be classed as relevant information and will affect the premium.
- C. They will only be considered if Tom had a further speeding conviction in the last 12 months.
- D. They will not be considered as this is not an underwriting factor in motor insurance risk assessment.
Answer: A
NEW QUESTION # 46
Which of the following is a feature of an insurance contract under the principle of "utmost good faith"?
- A. The insured must disclose all material facts relevant to the risk.
- B. The insurer must be transparent about the terms of the policy.
- C. The insurer must pay all claims, regardless of the terms of the policy.
- D. Both parties must agree on the premium amount in advance.
Answer: A
Explanation:
Under the principle of utmost good faith (also known as "uberrimae fidei"), the insured must disclose all material facts to the insurer that could affect the insurer's decision to provide coverage or the terms of the policy.
NEW QUESTION # 47
When the rule in Rylands v Fletcher operates, liability arises from the:
- A. vicarious liability of the defendant
- B. defendant's negligence.
- C. strict liability of the defendant
- D. defendant's trespass to land
Answer: C
Explanation:
The rule inRylands v Fletcherestablishesstrict liability, meaning the defendant can be held liable for certain kinds of damage even if they were not negligent or at fault. This applies in situations where a person brings something onto their land (like water or chemicals) that has the potential to escape and cause damage. If it does escape, the defendant is typically held strictly liable for any resulting harm, regardless of whether they were negligent or not.
NEW QUESTION # 48
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