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CII Insurance law (IL) Exam Sample Questions (Q35-Q40):
NEW QUESTION # 35
What happens if an insured party fails to disclose a material fact during the application process for an insurance policy?
- A. The insurer will continue to provide coverage without any adjustments
- B. The insurer may void the contract if the omission is deemed significant
- C. The insurer may reduce the coverage limits
- D. The insurer may charge a higher premium
Answer: B
Explanation:
Failure to disclose material facts (facts that would influence the insurer's decision to offer coverage) can lead to the voiding of the policy under the principle of utmost good faith.
NEW QUESTION # 36
Which of the following is not a typical requirement for the formation of an insurance contract?
- A. An offer to insure
- B. An acceptance of the offer
- C. The payment of a premium.
- D. The disclosure of a medical history
Answer: D
Explanation:
The disclosure of a medical history
Explanation: While disclosure of material facts, such as medical history, is crucial under the principle of utmost good faith, it isnotarequirementfor the formation of an insurance contract. The core requirements are an offer, acceptance, and consideration (premium).
NEW QUESTION # 37
A manufacturer was under contract to pay a supplier El .000 on receipt of the delivery of raw materials.
However, the supplier failed to deliver and the manufacturer had to purchase identical materials from another supplier for £1,200. What amount of damages is the manufacturer legally entitled to claim from the supplier who failed to deliver?
- A. £1,000
- B. £200
- C. £1,200
- D. £2,200
Answer: B
NEW QUESTION # 38
Which of the following is an essential element in the formation of an insurance contract?
- A. A valid claim history
- B. A formal written agreement
- C. The payment of a premium
- D. A signed declaration by the policyholder
Answer: C
NEW QUESTION # 39
What is the role of a condition precedent in an insurance policy?
- A. It is a requirement that must be met before the insurer is liable for a claim
- B. It ensures that the insurer will cover all risks associated with a policy
- C. It outlines exclusions from coverage
- D. It defines the scope of coverage for the policyholder
Answer: A
Explanation:
A condition precedent refers to a requirement that must be met before an insurer is obligated to pay a claim.
Failure to meet this condition can result in the insurer not being liable.
NEW QUESTION # 40
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