CII E05 : Examination element of M05 Insurance law

E05 real exams

Exam Code: E05

Exam Name: Examination element of M05 Insurance law

Updated: Sep 24, 2026

Q & A: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:

SectionObjectives
Key Legal Principles in Insurance- Disclosure and misrepresentation
- Insurable interest
- Warranties and conditions
- Utmost good faith (uberrimae fidei)
Insurance Contract Formation- Policy wording and interpretation
- Offer, acceptance, consideration, and intention to create legal relations
Principles of Insurance Law- Nature and purpose of insurance law
- Fundamental legal principles affecting insurance contracts
Liability and Tort Law- Negligence principles
- Occupiers’ liability
- Vicarious liability
Claims and Remedies- Claims handling process
- Fraud and avoidance of policies
- Subrogation and contribution

CII Examination element of M05 Insurance law Sample Questions:

Question #1

Why may an insurer insert a continuing warranty into an insurance policy?

  • A. To ensure that underinsurance is avoided at all times.
  • B. To maintain the annual aggregate limit of liability throughout the policy period.
  • C. To enable an insurer to charge an additional premium if the warranty is continually breached.
  • D. To encourage good risk management by the insured throughout the policy period.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #2

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

Correct Answer: A  🗳️

Question #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. 15 years.
  • D. 9 years.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

What is the most common for of corporation?

  • A. Registered corporation.
  • B. Corporation sole.
  • C. Statutory corporation.
  • D. Chartered corporation.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #5

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

Correct Answer: C  🗳️

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