CII R01 Chapter 3 Exam 2025
Questions and Answers 100% Pass
partnership arrangements - ✔✔don't have separate legal identities - considered as one
collection of people who come together to conduct business
they JOINTLY own assets and are JOINTLY responsible
Limited liability partnerships - ✔✔separate legal identity
liable for the liabilities of partnership up to a predetermined amount
considered more like a company
limited company - ✔✔legal person IN THEIR OWN RIGHT
company is responsible for liabilities
owners have their own separate identity
public limited companies - ✔✔shares traded on stock market
power of attorney act 1971 - ✔✔allows an individual to give power to another to act on
their behalf
power of attorney is the document specifying which decisions are permissible
must be signed by donor (or rep) and 2 further witnesses
donor gives power to donee
document
ended in 2007 so no new people can gain it
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 1
, only valid while donor can make own decisions
Lasting power of attorney - ✔✔allows someone to handle affairs when donor is
incapacitated
came into force 2007
has to be registered with office of public guardian
donor must be over 18 and fit state of mind when donating
attorney must be over 18 and not been bankrupt
can only be given to one donor
if the attorney becomes bankrupt, incapable or divorces the donor it becomes invalid
court of protection - ✔✔decides whether people can make their own decisions
if not it can make financial and welfare decisions for them
it can also appoint a deput if theres no LPA or EPA
decide if LPA is valid
remove attourneys
offer - ✔✔e.g. an insurance company offers to cover an individual and lays out terms
NOT advertisement - this is invitation to treat
acceptance - ✔✔individual requesting 'cover' and then agreeing to t&c's the company
quoted
e.g. when they pay the first premium or they sign the dd mandate
Consideration - ✔✔example is person paying premiums and firm agreeing to pay out a
sum assured on occurence of defined event
utmost good faith - ✔✔duty to disclose all material facts that affect the risk of the
proposed
applies to both
insurance act 2015 - ✔✔duty of fair presentation
no longer only one remedy for misrepresentation
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
partnership arrangements - ✔✔don't have separate legal identities - considered as one
collection of people who come together to conduct business
they JOINTLY own assets and are JOINTLY responsible
Limited liability partnerships - ✔✔separate legal identity
liable for the liabilities of partnership up to a predetermined amount
considered more like a company
limited company - ✔✔legal person IN THEIR OWN RIGHT
company is responsible for liabilities
owners have their own separate identity
public limited companies - ✔✔shares traded on stock market
power of attorney act 1971 - ✔✔allows an individual to give power to another to act on
their behalf
power of attorney is the document specifying which decisions are permissible
must be signed by donor (or rep) and 2 further witnesses
donor gives power to donee
document
ended in 2007 so no new people can gain it
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 1
, only valid while donor can make own decisions
Lasting power of attorney - ✔✔allows someone to handle affairs when donor is
incapacitated
came into force 2007
has to be registered with office of public guardian
donor must be over 18 and fit state of mind when donating
attorney must be over 18 and not been bankrupt
can only be given to one donor
if the attorney becomes bankrupt, incapable or divorces the donor it becomes invalid
court of protection - ✔✔decides whether people can make their own decisions
if not it can make financial and welfare decisions for them
it can also appoint a deput if theres no LPA or EPA
decide if LPA is valid
remove attourneys
offer - ✔✔e.g. an insurance company offers to cover an individual and lays out terms
NOT advertisement - this is invitation to treat
acceptance - ✔✔individual requesting 'cover' and then agreeing to t&c's the company
quoted
e.g. when they pay the first premium or they sign the dd mandate
Consideration - ✔✔example is person paying premiums and firm agreeing to pay out a
sum assured on occurence of defined event
utmost good faith - ✔✔duty to disclose all material facts that affect the risk of the
proposed
applies to both
insurance act 2015 - ✔✔duty of fair presentation
no longer only one remedy for misrepresentation
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 2
