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CII Insurance law (IL) Sample Questions:
1. Which of the following is true regarding the insurable interest in life insurance?
A) Insurable interest is required only at the time the policy is issued
B) The policyholder must have a financial interest in the life of the person insured
C) Insurable interest is not required for life insurance policies
D) The policyholder must have a financial interest in the property of the person insured
2. In the context of insurance, what does "utmost good faith" (uberrimae fidei) require?
A) The insurer must offer the policyholder the best possible coverage
B) The policyholder must always pay premiums in advance
C) Both parties must fully disclose all relevant information
D) The insurance contract must be written in simple, easy-to-understand language
3. Ambiguous terms in a household insurance contract are generally construed against the
A) insurer due to the ejusdem generis rule.
B) insurer due to the contra proferentem rule.
C) policyholder due to the literal rule.
D) policyholder due to the noscitur a sociis rule.
4. The principle of subrogation prevents a policyholder from profiting from
A) retaining salvaged property.
B) submitting a full claim recovery under more than one insurance policy.
C) assigning abandonment rights to the insurer.
D) claiming under both his insurance policy and against any negligent third party.
5. Fran is self-employed and works from home. She uses her spare bedroom as an office and separately insures her computer, photocopier and other items of office equipment. She occasionally uses the equipment for personal use. Under the Consumer Insurance (Disclosure and Representations) Act 2012. in relation to insuring this equipment, she would be defined as a
A) non-consumer because the items covered are not household items.
B) non-consumer because her insurance cover is mainly for business use.
C) consumer because she is working from home rather than on business premises.
D) consumer because she is an individual.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: D |







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