CII E05 : Examination element of M05 Insurance law

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Sep 11, 2026   Q&As: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:
SectionWeightObjectives
Topic 1: Interpretation and Vitiation of Insurance Contracts15%- Warranties, conditions and exceptions
- Rules of construction
- Factors vitiating the contract
Topic 2: Law of Torts15%- Principles of negligence
- Application to liability insurance
- Other torts: trespass, nuisance, breach of statutory duty
Topic 3: Formation of Insurance Contracts15%- Insurable interest
- Offer, acceptance and consideration
- Utmost good faith and disclosure
Topic 4: Nature and Sources of English Law15%- Legal system and structure
- Legal personality and capacity
- Sources of law: statute, common law, EU influence
Topic 5: Law of Agency10%- Authority, rights and duties
- Creation and types of agency
- Application to insurance intermediaries
Topic 6: Law of Contract15%- Essentials of a valid contract
- Terms, conditions and representations
- Breach and remedies
Topic 7: Claims and Indemnity Principles15%- Measure of indemnity
- Notification and proof of loss
- Subrogation and contribution
CII Examination element of M05 Insurance law Sample Questions:
Question #1

What are the main objectives of the principle of insurable interest?

  • A. To reduce physical hazard and to discourage profiteering.
  • B. To reduce moral hazard and to discourage profiteering.
  • C. To reduce physical hazard and to discourage wagering.
  • D. To reduce moral hazard and to discourage wagering.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #2

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

Correct Answer: A,C  🗳️

Question #3

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

  • A. the illegality makes the contract voidable rather than void.
  • B. the contract is against public policy but not substantive law.
  • C. both parties to the contract are equal in wrongdoing.
  • D. the legal portion of the contract can be severed from the illega portion.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

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 may be implied by conduct.
  • B. It will usually override any implied term which conflicts with it.
  • C. It may be oral or in writing.
  • D. It must be evidenced in documentary form.
Reveal Solution  Discussion  0

Correct Answer: B,C  🗳️

Question #5

The test of the materiality of facts in an insurance contract is defined according to the opinion of a

  • A. prudent underwriter.
  • B. reasonable person.
  • C. honest proposer.
  • D. diligent broker.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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