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CII Insurance law (IL) Exam Sample Questions (Q58-Q63):
NEW QUESTION # 58
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 3 years.
- B. 15 years.
- C. 9 years.
- D. 6 years.
Answer: A
NEW QUESTION # 59
Which of the following is considered an exclusion in a standard property insurance policy?
- A. Damage caused by accidental breakage
- B. Loss due to war or civil unrest
- C. Loss caused by a fire
- D. Theft by a third party
Answer: B
Explanation:
Many property insurance policies exclude certain high-risk events such as war, civil unrest, and terrorism.
These exclusions limit the insurer's exposure to catastrophic losses.
NEW QUESTION # 60
What is the primary purpose of the Duty of Disclosure in an insurance contract?
- A. To allow the policyholder to choose the terms of coverage
- B. To ensure the insurer is able to assess the risk involved in underwriting the policy
- C. To ensure that both parties understand the terms of the contract
- D. To protect the insurer from financial instability
Answer: B
Explanation:
The Duty of Disclosure ensures that the insured provides all relevant information about the risk they are insuring. This allows the insurer to assess the risk accurately and set appropriate premiums.
NEW QUESTION # 61
Under UK insurance law, which document outlines the terms of the insurance agreement between the insurer and the insured?
- A. The proposal form
- B. The insurance policy
- C. The schedule of benefits
- D. The statement of fact
Answer: B
Explanation:
The insurance policy is the formal document that outlines the terms, conditions, and coverage of the insurance agreement between the insurer and the insured. It specifies the risks covered, exclusions, and other contractual details.
NEW QUESTION # 62
Which of the following is a typical remedy for an insurer when the insured breaches a warranty?
- A. The insurer is obligated to reduce the payout amount based on the breach
- B. The insurer must continue to provide coverage, but with an increased premium
- C. The insurer can sue the insured for breach of contract
- D. The insurer may cancel the contract or refuse to pay a claim
Answer: D
Explanation:
A breach of a warranty is considered a serious violation in an insurance contract, and the insurer may have the right to cancel the contract or refuse to pay a claim based on the breach.
NEW QUESTION # 63
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