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CII E05 real answers - Examination element of M05 Insurance law

E05
  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Sep 11, 2026
  • Q & A: 52 Questions and Answers
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CII E05 Exam Syllabus Topics:

SectionWeightObjectives
Formation of Insurance Contracts15%- Offer, acceptance and consideration
- Insurable interest
- Utmost good faith and disclosure
Law of Torts15%- Application to liability insurance
- Other torts: trespass, nuisance, breach of statutory duty
- Principles of negligence
Law of Agency10%- Authority, rights and duties
- Application to insurance intermediaries
- Creation and types of agency
Interpretation and Vitiation of Insurance Contracts15%- Factors vitiating the contract
- Warranties, conditions and exceptions
- Rules of construction
Law of Contract15%- Breach and remedies
- Terms, conditions and representations
- Essentials of a valid contract
Nature and Sources of English Law15%- Sources of law: statute, common law, EU influence
- Legal system and structure
- Legal personality and capacity
Claims and Indemnity Principles15%- Subrogation and contribution
- Notification and proof of loss
- Measure of indemnity

CII Examination element of M05 Insurance law Sample Questions:

Question #1

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. obtain specific performance.
  • D. avoid the contract ab initio.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?

  • A. Power of Attorney.
  • B. Trust.
  • C. Coinsurance.
  • D. Lien.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

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.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

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

Correct Answer: A  🗳️

Question #5

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

Correct Answer: A,C  🗳️

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