CII Examination element of M05 Insurance law : E05

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Sep 17, 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. Effects of breach
  • 2. Fraud
  • 3. Representations and misrepresentations
  • 4. Conditions and warranties
Topic 2: Indemnity and Measurement of Loss- Application of indemnity
  • 1. Methods of indemnification
  • 2. Calculation of losses
Topic 3: Law of Torts- Principles of tort law
  • 1. Nuisance
  • 2. Liability and remedies
  • 3. Defamation
  • 4. Negligence
Topic 4: Law of Contract- Contract formation and operation
  • 1. Consideration
  • 2. Offer and acceptance
  • 3. Breach and remedies
  • 4. Terms of contract
Topic 5: Insurance Claims- Claims process and legal principles
  • 1. Notification and handling of claims
  • 2. Rights and obligations of parties
  • 3. Claims settlement
Topic 6: Subrogation and Contribution- Recovery and sharing of losses
  • 1. Subrogation rights
  • 2. Contribution between insurers
Topic 7: Formation of Insurance Contracts- Insurance contract principles
  • 1. Consumer and commercial insurance law
  • 2. Disclosure and fair presentation
  • 3. Insurable interest
  • 4. Utmost good faith
Topic 8: Law of Agency and Insurance- Agency relationships
  • 1. Duties and liabilities
  • 2. Authority of agents
  • 3. Creation of agency
Topic 9: 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

CII Examination element of M05 Insurance law Sample Questions:

Question #1

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. avoid the claim automatically due to the breach of the policy condition.
  • B. settle the claim and recover its outlay from the insured.
  • C. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
  • D. settle the claim and cancel the insurance policy from inception.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of

  • A. trespass to goods, conversion and nuisance only,
  • B. trespass to goods and conversion only.
  • C. trespass to goods, conversion, nuisance and battery.
  • D. trespass to goods only.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

For this question more than 1 option is correct. You must select all the correct options to gain the mark. Which special defences are available to the fort of libel?

  • A. Statutory authority.
  • B. Privilege.
  • C. Prescription.
  • D. Honest opinion.
  • E. Necessity.
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

Question #4

A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?

  • A. A condition precedent to liability.
  • B. A collateral condition.
  • C. A condition precedent to the contract.
  • D. A suspensive condition.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #5

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 must buy the painting back.
  • C. Bill may keep the claim settlement and also keep the painting.
  • D. Bill must return the claim settlement in exchange for the painting.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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