CII E05 real exam prep : Examination element of M05 Insurance law

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Sep 15, 2026
  • Q&As: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:

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

CII Examination element of M05 Insurance law Sample Questions:

Question #1

In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer

  • A. dies and his estate submits a claim to the insurer.
  • B. assigns the contract to a third party.
  • C. forms the contract with the insurer.
  • D. signs and submits the completed proposal form to the insurer.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

What are the main objectives of the principle of insurable interest?

  • A. To reduce moral hazard and to discourage wagering.
  • B. To reduce physical hazard and to discourage wagering.
  • C. To reduce physical hazard and to discourage profiteering.
  • D. To reduce moral hazard and to discourage profiteering.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

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. A deliberate attempt to obtain the proceeds of two policies.
  • B. An overlap in cover between two different types of insurance policy.
  • C. The inadvertent non-cancellation of a policy when a new policy is taken out.
  • D. A merger between two major insurance companies.
Reveal Solution  Discussion  0

Correct Answer: A,B  🗳️

Question #4

In what circumstances is abandonment automatic under a marine hull insurance policy?

  • A. The insured has performed an action of abandonment.
  • B. The actual total loss of the vessel.
  • C. The insured has sent a formal notice of abandonment.
  • D. The constructive total loss of the vessel.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

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. £6,000
  • C. £3,000
  • D. £15,000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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