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CII Insurance law (IL) Sample Questions:
1. Fraudulent claims invalidate the policy and the insurer is entitled to cancel the policy and deny any claims associated with it. Fraud is a serious violation under the principle of utmost good faith.
What is the purpose of the Doctrine of Insurable Interest in insurance contracts?
A) To protect the policyholder's right to make a claim regardless of their involvement
B) To protect the insurer from excessive claims
C) To ensure that the policyholder has a financial stake in the insured item or person
D) To prevent the insured from profiting from a loss
2. What is the basis of settlement under a new for old insurance policy if a television is stolen?
A) The original cost in full.
B) The replacement cost in full.
C) The replacement cost, less wear and tear.
D) The original cost, less wear and tear.
3. How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
A) Subrogation rights only apply under a theft policy.
B) Subrogation rights only apply under a personal accident policy.
C) Subrogation rights apply under both policies.
D) Subrogation rights do not apply under either policy.
4. What does the principle of "indemnity" generally prevent in an insurance contract?
A) Allowing the insured to profit from the loss
B) Insuring property for more than its actual value
C) Limiting the insurer's liability
D) Setting premiums based on market conditions
5. 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) 9 years.
B) 15 years.
C) 3 years.
D) 6 years.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |


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