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CII Insurance law (IL) Sample Questions:
1. Which of the following is an example of a condition precedent in an insurance contract?
A) A policyholder's obligation to make premium payments
B) The insured's duty to disclose any material changes in their circumstances
C) A policyholder's agreement to not engage in fraudulent behavior
D) The insurer's requirement to pay claims within a specific period after notification
2. Which of the following statements is true regarding exclusions in an insurance policy?
A) Exclusions are added to increase the risk of the insurer
B) Exclusions apply only if the loss is caused by fraud
C) Exclusions limit the scope of coverage, specifying situations that are not covered
D) Exclusions are always inapplicable if the insured pays extra for coverage
3. If a proposer has failed to fully answer a question on a proposal form, the insurer is deemed to have waived its rights to this information because it
A) does not have the right to ask the proposer for more information.
B) did not request further information.
C) has statistics on similar risks.
D) should be able to underwrite the risk based on the information already provided.
4. In tort law, when, if at all. is a minor legally responsible for his acts?
A) He is only responsible if a criminal ad has also been committed.
B) He is never responsible.
C) He is only responsible if he is over 14 years of age.
D) He is usually fully responsible.
5. In an insurance policy arranged through an insurance broker the parties to the contract are the:
A) Insurance broker and the insured only
B) insured and the insurer only
C) insured only
D) insurance broker only
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: B |
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