CII E05 : Examination element of M05 Insurance law

E05 pass collection

Exam Code: E05

Exam Name: Examination element of M05 Insurance law

Updated: Jul 20, 2026

Q & A: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Contract Terms and Vitiating Factors- Policy terms and validity
  • 1. Conditions and warranties
  • 2. Representations and misrepresentations
  • 3. Fraud
  • 4. Effects of breach
Topic 2: Law of Torts- Principles of tort law
  • 1. Negligence
  • 2. Defamation
  • 3. Liability and remedies
  • 4. Nuisance
Topic 3: 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 4: 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 5: Law of Agency and Insurance- Agency relationships
  • 1. Duties and liabilities
  • 2. Creation of agency
  • 3. Authority of agents
Topic 6: Subrogation and Contribution- Recovery and sharing of losses
  • 1. Contribution between insurers
  • 2. Subrogation rights
Topic 7: Indemnity and Measurement of Loss- Application of indemnity
  • 1. Calculation of losses
  • 2. Methods of indemnification
Topic 8: Law of Contract- Contract formation and operation
  • 1. Consideration
  • 2. Breach and remedies
  • 3. Offer and acceptance
  • 4. Terms of contract
Topic 9: Insurance Claims- Claims process and legal principles
  • 1. Notification and handling of claims
  • 2. Rights and obligations of parties
  • 3. Claims settlement

CII Examination element of M05 Insurance law Sample Questions:

1. 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) retaining salvaged property.
D) claiming under both his insurance policy and against any negligent third party.


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

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


3. 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) 6 years.
C) 9 years.
D) 15 years.


4. When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?

A) On submission of a claim.
B) It does not apply as the duty is to take reasonable care not to make a misrepresentation.
C) Where there is a variation in the insured risk.
D) From the date of a breach of warranty.


5. 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.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: C
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: B,D

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