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CII E05 : Examination element of M05 Insurance law

E05

Exam Code: E05

Exam Name: Examination element of M05 Insurance law

Updated: Jul 23, 2026

Q & A: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Law of Agency10%- Authority, rights and duties
- Application to insurance intermediaries
- Creation and types of agency
Topic 2: Claims and Indemnity Principles15%- Measure of indemnity
- Subrogation and contribution
- Notification and proof of loss
Topic 3: Interpretation and Vitiation of Insurance Contracts15%- Factors vitiating the contract
- Warranties, conditions and exceptions
- Rules of construction
Topic 4: Law of Torts15%- Principles of negligence
- Application to liability insurance
- Other torts: trespass, nuisance, breach of statutory duty
Topic 5: Nature and Sources of English Law15%- Sources of law: statute, common law, EU influence
- Legal personality and capacity
- Legal system and structure
Topic 6: Formation of Insurance Contracts15%- Offer, acceptance and consideration
- Insurable interest
- Utmost good faith and disclosure
Topic 7: Law of Contract15%- Essentials of a valid contract
- Breach and remedies
- Terms, conditions and representations

CII Examination element of M05 Insurance law Sample Questions:

1. In terms of private motor insurance, a renewal offer can be accepted

A) by any third party.
B) by the proposer acting in reliance of the offer.
C) only by written communication.
D) only by the proposer personally.


2. 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) handle a claims notification within 14 days.
B) not unreasonably reject an insured's claim.
C) provide reasonable guidance to an insured to help him make a claim.
D) settle a claim promptly once settlement has been agreed.


3. 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) forms the contract with the insurer.
C) signs and submits the completed proposal form to the insurer.
D) assigns the contract to a third party.


4. Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?

A) £5,000,000
B) £9,000,000
C) £7,500,000
D) £10,000,000


5. What is the most common for of corporation?

A) Statutory corporation.
B) Registered corporation.
C) Chartered corporation.
D) Corporation sole.


Solutions:

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

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