CII E05 Exam : Examination element of M05 Insurance law

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Oct 21, 2026
  • Q & A: 52 Questions and Answers

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About CII E05 Exam Questions

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CII E05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Law of Agency and Insurance- Agency relationships
  • 1. Authority of agents
  • 2. Duties and liabilities
  • 3. Creation of agency
Topic 2: Law of Torts- Principles of tort law
  • 1. Negligence
  • 2. Defamation
  • 3. Nuisance
  • 4. Liability and remedies
Topic 3: Insurance Claims- Claims process and legal principles
  • 1. Notification and handling of claims
  • 2. Claims settlement
  • 3. Rights and obligations of parties
Topic 4: Law of Contract- Contract formation and operation
  • 1. Terms of contract
  • 2. Breach and remedies
  • 3. Offer and acceptance
  • 4. Consideration
Topic 5: Insurance Contract Terms and Vitiating Factors- Policy terms and validity
  • 1. Fraud
  • 2. Representations and misrepresentations
  • 3. Conditions and warranties
  • 4. Effects of breach
Topic 6: Nature and Sources of English Law and Natural Legal Persons- Nature and sources of English law
  • 1. Legal systems and sources of law
  • 2. Natural and legal persons
Topic 7: Subrogation and Contribution- Recovery and sharing of losses
  • 1. Subrogation rights
  • 2. Contribution between insurers
Topic 8: Formation of Insurance Contracts- Insurance contract principles
  • 1. Consumer and commercial insurance law
  • 2. Insurable interest
  • 3. Utmost good faith
  • 4. Disclosure and fair presentation
Topic 9: Indemnity and Measurement of Loss- Application of indemnity
  • 1. Calculation of losses
  • 2. Methods of indemnification

CII Examination element of M05 Insurance law Sample Questions:

Question #1

Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as

  • A. a person holding a dominant position over Liz.
  • B. Liz's husband.
  • C. a person holding a senior position at Liz's bank.
  • D. Liz's independent financial adviser.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

Why may an insurer insert a continuing warranty into an insurance policy?

  • A. To ensure that underinsurance is avoided at all times.
  • B. To encourage good risk management by the insured throughout the policy period.
  • C. To enable an insurer to charge an additional premium if the warranty is continually breached.
  • D. To maintain the annual aggregate limit of liability throughout the policy period.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

What is the most common for of corporation?

  • A. Chartered corporation.
  • B. Statutory corporation.
  • C. Registered corporation.
  • D. Corporation sole.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer

  • A. requires notification of a claim within a very short time period.
  • B. provides coverage that is more restrictive than that of other insurers.
  • C. imposes a premium loading.
  • D. applies a specific exclusion within the policy wording.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #5

A breach of warranty under the general law of contract legally entitles an injured party to

  • A. claim damages.
  • B. avoid the contract from the date of the breach.
  • C. avoid the contract ab initio.
  • D. obtain specific performance.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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