Released CII E05 Updated Questions PDF
E05 Dumps and Practice Test (52 Exam Questions)
CII E05 (Examination element of M05 Insurance law) Certification Exam is a comprehensive test that evaluates the knowledge and understanding of individuals in the insurance industry. Examination element of M05 Insurance law certification exam is designed for those who wish to demonstrate their expertise in the area of insurance law and regulation. It is an essential certification for those who work in insurance companies, brokerage firms, or regulatory authorities.
NEW QUESTION # 29
The principle of subrogation prevents a policyholder from profiting from
- A. assigning abandonment rights to the insurer.
- B. submitting a full claim recovery under more than one insurance policy.
- C. claiming under both his insurance policy and against any negligent third party.
- D. retaining salvaged property.
Answer: C
NEW QUESTION # 30
For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?
- A. The inadvertent non-cancellation of a policy when a new policy is taken out.
- B. An overlap in cover between two different types of insurance policy.
- C. A merger between two major insurance companies.
- D. A deliberate attempt to obtain the proceeds of two policies.
Answer: B,D
NEW QUESTION # 31
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?
- A. It may be oral or in writing.
- B. It will usually override any implied term which conflicts with it.
- C. It must be evidenced in documentary form.
- D. It may be implied by conduct.
Answer: A,B
NEW QUESTION # 32
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 3 years.
- B. 15 years.
- C. 6 years.
- D. 9 years.
Answer: A
NEW QUESTION # 33
A claimant may possibly recover money transferred under an illegal contract when
- A. the legal portion of the contract can be severed from the illega portion.
- B. both parties to the contract are equal in wrongdoing.
- C. the contract is against public policy but not substantive law.
- D. the illegality makes the contract voidable rather than void.
Answer: B
NEW QUESTION # 34
What is the most common for of corporation?
- A. Statutory corporation.
- B. Registered corporation.
- C. Corporation sole.
- D. Chartered corporation.
Answer: B
NEW QUESTION # 35
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. as a result of stress or harassment at work.
- B. through fear for his own safety in an accident.
- C. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
- D. through fear for the safety of another person involved in an accident which he witnessed.
Answer: B
NEW QUESTION # 36
At what stage is insurable interest required for a marine cargo insurance policy?
- A. At inception of the policy only.
- B. Throughout the duration of the contract.
- C. At the time of the loss only.
- D. At both inception of the policy and at the time of the loss.
Answer: C
NEW QUESTION # 37
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Avoid the policy ab initio.
- B. Reject the claim for breach of warranty.
- C. Make an ex-gratia payment.
- D. Pay the claim in full.
Answer: D
NEW QUESTION # 38
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. forms the contract with the insurer.
- B. signs and submits the completed proposal form to the insurer.
- C. dies and his estate submits a claim to the insurer.
- D. assigns the contract to a third party.
Answer: A
NEW QUESTION # 39
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. Official law reports.
- B. Legislation.
- C. International treaties.
- D. Case law.
Answer: B,D
NEW QUESTION # 40
A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
- A. If there is a breach of a warranty requiring the burglar alarm to be set.
- B. If the tumble dryer is covered by extended warranty insurance.
- C. If the policyholder exaggerates the value of the claim.
- D. If there is a subrogation action against the manufacturer of the tumble dryer.
Answer: C
NEW QUESTION # 41
Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill's claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill's position under his insurance policy?
- A. Bill may exercise an option to buy the painting back.
- B. Bill may keep the claim settlement and also keep the painting.
- C. Bill must return the claim settlement in exchange for the painting.
- D. Bill must buy the painting back.
Answer: A
NEW QUESTION # 42
A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to
- A. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
- B. settle the claim and recover its outlay from the insured.
- C. settle the claim and cancel the insurance policy from inception.
- D. avoid the claim automatically due to the breach of the policy condition.
Answer: D
NEW QUESTION # 43
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. Both the insurer and Paul at different times.
- B. No one as Tim is not a party to the insurance contract.
- C. Paul as it is a consumer contract.
- D. The insurer at all times.
Answer: D
NEW QUESTION # 44
A breach of warranty under the general law of contract legally entitles an injured party to
- A. avoid the contract from the date of the breach.
- B. obtain specific performance.
- C. claim damages.
- D. avoid the contract ab initio.
Answer: C
NEW QUESTION # 45
Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?
- A. It is shared between the insurer and the insured.
- B. The insurer only.
- C. The insured only.
- D. The State
Answer: C
NEW QUESTION # 46
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
- A. £5,000
- B. £3,000
- C. £6,000
- D. £15,000
Answer: A
NEW QUESTION # 47
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. provide reasonable guidance to an insured to help him make a claim.
- B. settle a claim promptly once settlement has been agreed.
- C. handle a claims notification within 14 days.
- D. not unreasonably reject an insured's claim.
Answer: A,B,D
NEW QUESTION # 48
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
- A. imposes a premium loading.
- B. provides coverage that is more restrictive than that of other insurers.
- C. requires notification of a claim within a very short time period.
- D. applies a specific exclusion within the policy wording.
Answer: C
NEW QUESTION # 49
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CII E05 certification exam is an essential examination element of M05 Insurance law. E05 exam is designed to test the knowledge and understanding of insurance law and regulation. It is intended for individuals who work in the insurance industry or those who want to pursue a career in this field. E05 exam covers a wide range of topics related to insurance law, including the principles of insurance, the legal framework of insurance contracts, the regulation of insurance companies, and the legal and regulatory issues related to claims handling and settlement.
CII E05 exam covers a wide range of topics, including the legal principles that underpin insurance contracts, the regulation of insurance businesses, and the legal framework governing claims handling. It also tests a candidate's understanding of the role of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in regulating the insurance industry.
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