Page 11 - CFPA-CII-Module W01-Examen blanc N°2-Qestions avec réponses

48. A policyholder wants to cancel his motor insurance policy. The policyholder will usually receive
a return of premium based on:

a) The full annual premium
b) The annual premium less 10%
c) Short period rates
d) Pro rata rates

49. ABC Insurers cancelled their agency with XYZ Brokers. Three weeks later a broking employee
wrote an ABC cover note and accepted a premium payment for motor insurance. The policyholder’s
cover is usually:

a) Invalid as the agency was terminated
b) Valid because of apparent authority
c) Underwritten by the broker’s authority
d) Transferred to another insurer by the MIB

50. One of the following will not be found in an agreement between an insurer and intermediary

a) How the intermediary may contact client
b) Scales of commission and claim money
c) Authorisation
d) Premiums and credit

51. Under a long term contract (eg a life insurance policy) the duty of disclosure ceases:

a) At inception of the policy
b) When the insured renews
c) At the time of a claim
d) Never; it runs for the whole contract

52. The principle which requires all parties to volunteer material information is:

a) Special Damages
b) Indemnity
c) Subrogation
d) Utmost Good Faith

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