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CII E05 exam : Examination element of M05 Insurance law

E05 Exam Simulator
  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Sep 02, 2026
  • Q & A: 52 Questions and Answers
  • CII E05 Q&A - in .pdf

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CII E05 Exam Syllabus Topics:

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

CII Examination element of M05 Insurance law Sample Questions:

Question 1

For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?

A. Avoid the contract, refuse all claims and keep the premium.
B. Apply any terms it would have applied if the misrepresentation had not taken place.
C. Reduce the claim amount in proportion to the premium it would have charged.
D. Reject the claim, but maintain the policy.


Question 2

The proximate cause of a loss is best described as the

A. most dominant cause of the loss.
B. first peril to cause the loss.
C. final peril to cause the loss.
D. most remote cause of the loss.


Question 3

For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?

A. It will usually override any implied term which conflicts with it.
B. It may be implied by conduct.
C. It must be evidenced in documentary form.
D. It may be oral or in writing.


Question 4

What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?

A. 35% for personal injury cases and 25% for employment tribunal cases.
B. 35% for both cases.
C. 50% for both cases.
D. 25% for personal injury cases and 35% for employment tribunal cases.


Question 5

Insurance agencies are usually created by way of

A. unilateral agreement.
B. deed of agreement.
C. express agreement.
D. implied agreement.


Solutions:

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

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