M05 Practice Questions

A.  

International treaties.

B.  

Case law.

C.  

Legislation.

D.  

Official law reports.

A.  

The policyholder must have a financial stake in the property or event insured at the time of loss

B.  

The policyholder must have an interest in the property at the time of policy purchase but not at thetime of loss

C.  

Insurable interest is only required for life insurance policies

D.  

Insurable interest must always be proven at the time the policy is issued

A.  

Both parties must fully disclose all relevant information

B.  

The insurer must offer the policyholder the best possible coverage

C.  

The policyholder must always pay premiums in advance

D.  

The insurance contract must be written in simple, easy-to-understand language

A.  

The policyholder may still receive a partial payout

B.  

The insurer is required to pay the claim regardless of the fraud

C.  

The insurer may cancel the policy and deny the claim

D.  

The policyholder must repay any claim payments made previously

A.  

policyholder due to the literal rule.

B.  

policyholder due to the noscitur a sociis rule.

C.  

insurer due to the contra proferentem rule.

D.  

insurer due to the ejusdem generis rule.