GET Real CII M05 Exam Questions With 100% Refund Guarantee Sep 10, 2025
Get Special Discount Offer on M05 Dumps PDF
NEW QUESTION # 46
Which of the following is an example of a condition precedent in an insurance contract?
- A. The insured's duty to disclose any material changes in their circumstances
- B. A policyholder's agreement to not engage in fraudulent behavior
- C. The insurer's requirement to pay claims within a specific period after notification
- D. A policyholder's obligation to make premium payments
Answer: A
Explanation:
Explanation:Conditions precedentare actions or circumstances that must be met or fulfilled before the insurer is obligated to pay a claim. Failure to fulfill a condition precedent, such as disclosing material changes in circumstances, may result in a denial of a claim.
NEW QUESTION # 47
Under insurance law, what is the effect of a fraudulent claim on an insurance policy?
- A. The insurer is required to pay the claim regardless of the fraud
- B. The insurer may cancel the policy and deny the claim
- C. The policyholder may still receive a partial payout
- D. The policyholder must repay any claim payments made previously
Answer: B
NEW QUESTION # 48
Which of the following terms in an insurance policy is typically enforceable in a court of law?
- A. Exclusions
- B. Representations
- C. Warranties
- D. Conditions precedent
Answer: C
Explanation:
Warrantiesare conditions in the insurance contract that are considered to be fundamental and must be strictly adhered to. A breach of warranty can result in the insurer being able to avoid liability. Representations are made by the insured but are not legally binding in the same way.
NEW QUESTION # 49
Which of the following is an example of a condition precedent in an insurance contract?
- A. The insurer must provide coverage for accidental damage
- B. The insured must pay the premium
- C. The insurer is required to pay claims for theft
- D. The insured must maintain the insured item in good condition
Answer: D
Explanation:
A condition precedent is an obligation that must be met before the insurer becomes liable for a claim. For example, the insured might need to maintain property in good condition or comply with safety measures before coverage applies.
NEW QUESTION # 50
Which of the following is an essential element in the formation of an insurance contract?
- A. A valid claim history
- B. The payment of a premium
- C. A formal written agreement
- D. A signed declaration by the policyholder
Answer: B
NEW QUESTION # 51
Which of the following best defines an insurance contract?
- A. A contract for the protection of physical property only.
- B. A contract that only applies to personal property insurance.
- C. A contract where the insurer assumes no liability.
- D. A contract in which one party agrees to indemnify another against specified risks in exchange for premiums.
Answer: D
Explanation:
An insurance contract is an agreement where one party (the insurer) agrees to compensate another (the policyholder) for financial losses arising from specific risks, in exchange for regular payments (premiums).
NEW QUESTION # 52
A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?
- A. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
- B. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
- C. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
- D. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
Answer: B
NEW QUESTION # 53
If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of
- A. subrogation.
- B. good faith.
- C. contribution.
- D. indemnity.
Answer: D
NEW QUESTION # 54
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. 6 years.
- C. 15 years.
- D. 9 years.
Answer: A
NEW QUESTION # 55
A breach of warranty under the general law of contract legally entitles an injured party to
- A. claim damages.
- B. avoid the contract from the date of the breach.
- C. avoid the contract ab initio.
- D. obtain specific performance.
Answer: A
NEW QUESTION # 56
In the context of an insurance claim, what does the principle of subrogation refer to?
- A. The insurer's right to reduce the claim payout
- B. The insured's right to receive compensation up to the value of their loss
- C. The insured's obligation to provide all relevant documents to the insurer
- D. The insurer's right to pursue a third party responsible for the loss
Answer: D
Explanation:
Subrogationis the principle that allows the insurer to step into the shoes of the insured and pursue any third party responsible for causing the loss. This helps the insurer recover the claim amount paid out to the insured.
NEW QUESTION # 57
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Reduce the claim amount in proportion to the premium it would have charged.
- B. Reject the claim, but maintain the policy.
- C. Avoid the contract, refuse all claims and keep the premium.
- D. Apply any terms it would have applied if the misrepresentation had not taken place.
Answer: A,D
NEW QUESTION # 58
For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?
- A. Where there is underinsurance.
- B. When fraud or arson by the insured is suspected.
- C. Where the building was destroyed by an explosion.
- D. Upon the request of any person(s) interested in the buildings.
Answer: B,D
NEW QUESTION # 59
The principle of subrogation prevents a policyholder from profiting from
- A. assigning abandonment rights to the insurer.
- B. claiming under both his insurance policy and against any negligent third party.
- C. retaining salvaged property.
- D. submitting a full claim recovery under more than one insurance policy.
Answer: B
NEW QUESTION # 60
In an insurance policy arranged through an insurance broker the parties to the contract are the:
- A. insured and the insurer only
- B. Insurance broker and the insured only
- C. insurance broker only
- D. insured only
Answer: A
NEW QUESTION # 61
As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
- A. the misrepresentation was innocent.
- B. the premium was paid by monthly installments.
- C. the misrepresentation was fraudulent.
- D. no claim had been submitted or paid.
Answer: A
NEW QUESTION # 62
What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?
- A. Loss of interest.
- B. Wear and tear.
- C. Brokerage.
- D. An excess.
Answer: B
NEW QUESTION # 63
A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
- A. If the policyholder exaggerates the value of the claim.
- B. If there is a breach of a warranty requiring the burglar alarm to be set.
- C. If the tumble dryer is covered by extended warranty insurance.
- D. If there is a subrogation action against the manufacturer of the tumble dryer.
Answer: A
NEW QUESTION # 64
......
PDF Download CII Test To Gain Brilliante Result!: https://www.test4cram.com/M05_real-exam-dumps.html
Provide Updated CII M05 Dumps as Practice Test and PDF: https://drive.google.com/open?id=1JJEsqtCVi1tiYMmSRADVCdCk7LdQJ95y