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Updated: May 30, 2026
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CII Insurance law (IL) Sample Questions:
1. At what stage is insurable interest required for a marine cargo insurance policy?
A) Throughout the duration of the contract.
B) At inception of the policy only.
C) At the time of the loss only.
D) At both inception of the policy and at the time of the loss.
2. Which of the following is true about insurable interest?
A) The policyholder must have an interest in the property at the time of policy purchase but not at thetime of loss
B) Insurable interest must always be proven at the time the policy is issued
C) The policyholder must have a financial stake in the property or event insured at the time of loss
D) Insurable interest is only required for life insurance policies
3. Under the provisions of the Contracts (Rights of Third Parties) Act 1999, the right to enforce a contractual term arises if a third party.
A) appoints an agent to carry out the contract provisions.
B) is the agent who arranged the contract.
C) is one of a general class of persons identified in the contract as benefitting from the contract.
D) proves that the parties to the contract intended to limit his rights.
4. In which of the following cases can the insurer void an insurance contract?
A) If the policyholder does not pay the premium
B) If the insurer fails to provide a certificate of insurance
C) If the policyholder has misrepresented a material fact at the time of underwriting
D) If the insurer cannot locate the policyholder
5. When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as
A) a real statement.
B) a new for old policy.
C) an indemnity policy.
D) a first loss policy.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |
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