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CII E05 exam : Examination element of M05 Insurance law

E05 Exam Questions
  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Oct 30, 2026
  • Q & A: 52 Questions and Answers
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CII E05 Exam Syllabus Topics:

SectionObjectives
Liability and Tort Law- Vicarious liability
- Occupiers’ liability
- Negligence principles
Insurance Contract Formation- Policy wording and interpretation
- Offer, acceptance, consideration, and intention to create legal relations
Principles of Insurance Law- Nature and purpose of insurance law
- Fundamental legal principles affecting insurance contracts
Claims and Remedies- Claims handling process
- Fraud and avoidance of policies
- Subrogation and contribution
Key Legal Principles in Insurance- Insurable interest
- Disclosure and misrepresentation
- Warranties and conditions
- Utmost good faith (uberrimae fidei)

CII Examination element of M05 Insurance law Sample Questions:

Question #1

The branch of law particularly relevant when handling negligence claims is

  • A. civil law.
  • B. constitutional law.
  • C. administrative.
  • D. public law.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?

  • A. Where the building was destroyed by an explosion.
  • B. When fraud or arson by the insured is suspected.
  • C. Upon the request of any person(s) interested in the buildings.
  • D. Where there is underinsurance.
Reveal Solution  Discussion  0

Correct Answer: B,C  🗳️

Question #3

As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because

  • A. no claim had been submitted or paid.
  • B. the premium was paid by monthly installments.
  • C. the misrepresentation was fraudulent.
  • D. the misrepresentation was innocent.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must

  • A. not unreasonably reject an insured's claim.
  • B. handle a claims notification within 14 days.
  • C. provide reasonable guidance to an insured to help him make a claim.
  • D. settle a claim promptly once settlement has been agreed.
Reveal Solution  Discussion  0

Correct Answer: A,C,D  🗳️

Question #5

Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?

  • A. No one as Tim is not a party to the insurance contract.
  • B. The insurer at all times.
  • C. Paul as it is a consumer contract.
  • D. Both the insurer and Paul at different times.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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