Free CII E05 Exam Dumps Questions & Answers

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.  applies a specific exclusion within the policy wording.
• C.  requires notification of a claim within a very short time period.
• D.  imposes a premium loading.

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

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

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 the authority to act on behalf of another party.
• C.  A person has transferred his obligations under a contract to another party.
• D.  A person has ratified another party's action.

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

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

A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?

• A.  A condition precedent to the contract.
• B.  A condition precedent to liability.
• C.  A suspensive condition.
• D.  A collateral condition.