For this question more than 1 option is correct.

Vendor: CII
Product: E05
Update on: Jan 2, 2026
Questions: 50

CII E05 Question Answer

For this question more than 1 option is correct. You must select all the correct options to gain the mark.

A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?

Reject the claim, but maintain the policy.

Reduce the claim amount in proportion to the premium it would have charged.

Apply any terms it would have applied if the misrepresentation had not taken place.

Avoid the contract, refuse all claims and keep the premium.