M05 Revolutionary Guide To Exam CII Dumps [Q53-Q77]

NO.53 A nurse working shifts is regularly disturbed by her neighbour givig brass instrument lessons in Ihe evenings.
She is tired and losing concentration at work but is NOT at risk of losing her job. What remedy can be provided by equity as an alternative source of law to common law?

Specific performance

Punitive damages.

General damages.

An injunction.

NO.54 Paul made a formal offer to John and gave hun (out weeks to accept it. Three weeks later, and before, John had responded. Paul needed to withdraw the offer. What is the position in contract law?

Paul does not have the right to withdraw the offer within the four-week period.

John cannot enforce the contract but is entitled to claim damages from Paul.

Paul has the right to withdraw the offer at any time before acceptance.

John can enforce the contract as the offer was formally made.

NO.55 Which of the following is true about insurable interest?

The policyholder must have a financial stake in the property or event insured at the time of loss

The policyholder must have an interest in the property at the time of policy purchase but not at thetime of loss

Insurable interest is only required for life insurance policies

Insurable interest must always be proven at the time the policy is issued

NO.56 In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury

through fear for his own safety in an accident.

through fear for the safety of another person involved in an accident which he witnessed.

as a result of stress or harassment at work.

as a result of grief or sorrow for the loss of a person with whom he had a close relationship.

NO.57 What are the main objectives of the principle of insurable interest?

To reduce moral hazard and to discourage profiteering.

To reduce physical hazard and to discourage profiteering.

To reduce physical hazard and to discourage wagering.

To reduce moral hazard and to discourage wagering.

NO.58 What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

It provides legal advice to insurers

It helps consumers resolve complaints with their insurers

It regulates the pricing of insurance products

It issues licenses to insurance companies

NO.59 Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim’s principal?

No one as Tim is not a party to the insurance contract.

Both the insurer and Paul at different times.

The insurer at all times.

Paul as it is a consumer contract.

NO.60 The test of the materiality of facts in an insurance contract is defined according to the opinion of a

prudent underwriter.

diligent broker.

reasonable person.

honest proposer.

NO.61 What is the role of a condition precedent in an insurance policy?

It defines the scope of coverage for the policyholder

It is a requirement that must be met before the insurer is liable for a claim

It outlines exclusions from coverage

It ensures that the insurer will cover all risks associated with a policy

NO.62 A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a

moral hazard.

physical hazard.

fundamental risk.

pure risk.

NO.63 Which of the following regulatory bodies oversees the conduct of insurance firms in the UK?

Financial Conduct Authority (FCA)

Prudential Regulation Authority (PRA)

Bank of England

Insurance Ombudsman Service

NO.64 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?

They will not be considered as this is not an underwriting factor in motor insurance risk assessment.

They will only be considered if Tom had a further speeding conviction in the last 12 months.

They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.

They will be classed as relevant information and will affect the premium.

NO.65 Fred knew Susie wanted to sell her car. On behalf of Susie, Fred agreed the sale of the car to Tina for £5.000.
That evening, Susie ratified Fred’s agreement with Tina The next day. Tina decided NOT to proceed with the purchase What is Susie’s legal position in these circumstances?

She can sue both Fred and Tina jointly for breach of good faith.

She can sue Fred for breach of agency agreement.

She can sue Tina for breach of contract.

She has no legal right to sue.

NO.66 For this question more than 1 option is correct. You must select all the correct options to gain the mark.
Which special defences are available to the fort of libel?

Honest opinion.

Privilege.

Statutory authority.

Necessity.

Prescription.

NO.67 Which of the following is true regarding the insurable interest in life insurance?

The policyholder must have a financial interest in the life of the person insured

The policyholder must have a financial interest in the property of the person insured

Insurable interest is required only at the time the policy is issued

Insurable interest is not required for life insurance policies

NO.68 In terms of private motor insurance, a renewal offer can be accepted

only by written communication.

only by the proposer personally.

by the proposer acting in reliance of the offer.

by any third party.

NO.69 John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?

Immediately, irrespective of prognosis.

He does not need to disclose this.

Immediately, but only if the diagnosis is terminal.

At the date of the next premium payment.

NO.70 Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?

The insured only.

The insurer only.

The State

It is shared between the insurer and the insured.

NO.71 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

consumer because she is an individual.

consumer because she is working from home rather than on business premises.

non-consumer because her insurance cover is mainly for business use.

non-consumer because the items covered are not household items.

NO.72 Which of the following is not a typical requirement for the formation of an insurance contract?

An offer to insure

An acceptance of the offer

The payment of a premium.

The disclosure of a medical history

NO.73 For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?

International treaties.

Case law.

Legislation.

Official law reports.

NO.74 What is the principle of utmost good faith in insurance?

Insurers must provide coverage for all types of risks.

Both parties in the contract must act honestly and disclose all material facts.

A policyholder’s claims must always be paid out without dispute.

The insurance policy must be renewed annually.

NO.75 Which of the following best defines an insurance contract?

A contract for the protection of physical property only.

A contract in which one party agrees to indemnify another against specified risks in exchange for premiums.

A contract that only applies to personal property insurance.

A contract where the insurer assumes no liability.

NO.76 When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?

From the date of a breach of warranty.

It does not apply as the duty is to take reasonable care not to make a misrepresentation.

Where there is a variation in the insured risk.

On submission of a claim.

NO.77 In the context of an insurance claim, what does the principle of subrogation refer to?

The insured’s right to receive compensation up to the value of their loss

The insurer’s right to pursue a third party responsible for the loss

The insurer’s right to reduce the claim payout

The insured’s obligation to provide all relevant documents to the insurer

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