CII E05 : Examination element of M05 Insurance law

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Jul 30, 2026     Q & A: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:

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

CII Examination element of M05 Insurance law Sample Questions:

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


2. A claimant may possibly recover money transferred under an illegal contract when

A) the contract is against public policy but not substantive law.
B) both parties to the contract are equal in wrongdoing.
C) the legal portion of the contract can be severed from the illega portion.
D) the illegality makes the contract voidable rather than void.


3. The branch of law particularly relevant when handling negligence claims is

A) civil law.
B) public law.
C) constitutional law.
D) administrative.


4. 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) Coinsurance.
C) Trust.
D) Lien.


5. According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer

A) applies a specific exclusion within the policy wording.
B) provides coverage that is more restrictive than that of other insurers.
C) requires notification of a claim within a very short time period.
D) imposes a premium loading.


Solutions:

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

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