COI Diploma Practice Questions - College of Insurance IIK Diploma in Insurance AIIK Exam - COI Diploma Practice Questions - College of Insurance IIK Diploma in Insurance AIIK Exam

Question 1

Which of the following insurance principles states that the insured should not profit from a loss and should be restored to their pre-loss financial position?

Principle of Utmost Good Faith Principle of Insurable Interest Principle of Indemnity Principle of Subrogation

Correct Answer:

Principle of Indemnity

Question 2

In insurance terms, a moral hazard is best defined as:

A physical condition that increases the probability of a loss An attitude or character defect in an individual that increases the frequency or severity of a loss An act of God, such as an earthquake or flood, that causes physical damage A legal ruling that increases the cost of claims payouts

Correct Answer:

An attitude or character defect in an individual that increases the frequency or severity of a loss

Question 3

Which fundamental principle of insurance requires the applicant to disclose all material facts to the insurer during the negotiation of a contract?

Principle of Contribution Principle of Utmost Good Faith Principle of Proximate Cause Principle of Subrogation

Correct Answer:

Principle of Utmost Good Faith

Question 4

An insurable interest must exist in a life assurance contract at which specific point in time under common law?

Only at the time of the claim Only at the inception of the policy Both at the inception of the policy and at the time of the claim At any point during the policy term, regardless of inception

Correct Answer:

Only at the inception of the policy

Question 5

What is the primary objective of the principle of subrogation in insurance?

To allow the insured to collect compensation from both the insurer and the negligent third party To ensure that the negligent party escapes financial liability for the damage caused To prevent the insured from recovering more than the actual loss when a third party is liable To force the insurer to pay the claim even if the loss was not covered by the policy

Correct Answer:

To prevent the insured from recovering more than the actual loss when a third party is liable

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About this Exam

Prepare with the COI Diploma Practice Questions - College of Insurance IIK Diploma in Insurance AIIK Exam practice quiz. This question bank includes 100 questions covering insurance, kenya, policy, loss, and principle. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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COI Diploma Practice Questions - College of Insurance IIK Diploma in Insurance AIIK Exam

This practice set contains 100 questions from the matching question bank and focuses on insurance, kenya, policy, loss, and principle. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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COI Diploma Practice Questions - College of Insurance IIK Diploma in Insurance AIIK Exam

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