E05 Practice CII Verified Answers - Pass Your Exams For Sure! [2026]
Valid Way To Pass Insurance Law (M05)'s E05 Exam
CII E05 exam is recognized by the Chartered Insurance Institute (CII), which is the premier professional organization for the insurance industry. Successful completion of the exam is a prerequisite for obtaining the CII Certificate in Insurance, which is a widely recognized qualification in the insurance industry.
CII E05 exam, also known as the Examination element of M05 Insurance law, is a professional qualification exam offered by the Chartered Insurance Institute (CII). E05 exam is designed to test candidates' knowledge and understanding of the legal and regulatory framework governing the insurance industry in the UK. It is an important exam for anyone looking to work in the insurance industry, as a solid understanding of insurance law is essential for anyone working in this field.
NEW QUESTION # 22
What is the most common for of corporation?
- A. Registered corporation.
- B. Statutory corporation.
- C. Corporation sole.
- D. Chartered corporation.
Answer: A
NEW QUESTION # 23
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The doctrine of subrogation is excluded from the policy.
- B. Cover is suspended whilst the insurer pursues an action for subrogation.
- C. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- D. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
Answer: C
NEW QUESTION # 24
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. Both the insurer and Paul at different times.
- B. Paul as it is a consumer contract.
- C. The insurer at all times.
- D. No one as Tim is not a party to the insurance contract.
Answer: C
NEW QUESTION # 25
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 collateral condition.
- B. A suspensive condition.
- C. A condition precedent to liability.
- D. A condition precedent to the contract.
Answer: C
NEW QUESTION # 26
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.
Answer: A,B,C
NEW QUESTION # 27
In terms of private motor insurance, a renewal offer can be accepted
- A. only by written communication.
- B. by the proposer acting in reliance of the offer.
- C. by any third party.
- D. only by the proposer personally.
Answer: B
NEW QUESTION # 28
Ambiguous terms in a household insurance contract are generally construed against the
- A. policyholder due to the literal rule.
- B. insurer due to the ejusdem generis rule.
- C. insurer due to the contra proferentem rule.
- D. policyholder due to the noscitur a sociis rule.
Answer: C
NEW QUESTION # 29
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. Reduce the claim amount in proportion to the premium it would have charged.
- B. Apply any terms it would have applied if the misrepresentation had not taken place.
- C. Avoid the contract, refuse all claims and keep the premium.
- D. Reject the claim, but maintain the policy.
Answer: A,B
NEW QUESTION # 30
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.
Answer: C
NEW QUESTION # 31
A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?
- A. If the tumble dryer is covered by extended warranty insurance.
- B. If there is a subrogation action against the manufacturer of the tumble dryer.
- C. If the policyholder exaggerates the value of the claim.
- D. If there is a breach of a warranty requiring the burglar alarm to be set.
Answer: C
NEW QUESTION # 32
A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under
- A. a condition precedent to liability.
- B. statute.
- C. a condition subsequent to liability.
- D. tort.
Answer: B
NEW QUESTION # 33
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 must return the claim settlement in exchange for the painting.
- B. Bill may exercise an option to buy the painting back.
- C. Bill may keep the claim settlement and also keep the painting.
- D. Bill must buy the painting back.
Answer: B
NEW QUESTION # 34
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 oral or in writing.
- B. It may be implied by conduct.
- C. It must be evidenced in documentary form.
- D. It will usually override any implied term which conflicts with it.
Answer: A,D
NEW QUESTION # 35
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 a corporation aggregate?
- A. It is a legal person representing one official position.
- B. It is an organisation with a separate legal existence to its membership.
- C. It is not treated as a separate legal entity.
- D. It is answerable to its shareholders or members.
Answer: B,D
NEW QUESTION # 36
A claimant may possibly recover money transferred under an illegal contract when
- A. the contract is against public policy but not substantive law.
- B. the legal portion of the contract can be severed from the illega portion.
- C. the illegality makes the contract voidable rather than void.
- D. both parties to the contract are equal in wrongdoing.
Answer: D
NEW QUESTION # 37
What are the main objectives of the principle of insurable interest?
- A. To reduce physical hazard and to discourage wagering.
- B. To reduce physical hazard and to discourage profiteering.
- C. To reduce moral hazard and to discourage wagering.
- D. To reduce moral hazard and to discourage profiteering.
Answer: C
NEW QUESTION # 38
Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?
- A. It is shared between the insurer and the insured.
- B. The insured only.
- C. The State
- D. The insurer only.
Answer: B
NEW QUESTION # 39
How can an agency relationship be best described?
- A. A person has the authority to act on behalf of another party.
- B. A person has ratified another party's action.
- C. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
- D. A person has transferred his obligations under a contract to another party.
Answer: A
NEW QUESTION # 40
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. a person holding a senior position at Liz's bank.
- B. a person holding a dominant position over Liz.
- C. Liz's husband.
- D. Liz's independent financial adviser.
Answer: B
NEW QUESTION # 41
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The original physical injury of the dog bite.
- B. The delay in obtaining the correct medical treatment.
- C. The unhygienic washing of the dog bite.
- D. The delay in seeking medical treatment.
Answer: A
NEW QUESTION # 42
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CII E05 examination consists of a 2-hour objective test in which multiple-choice questions are asked to evaluate the applicant's knowledge of insurance law. The test comprises a total of 100 questions, with each question carrying one mark. E05 examination is conducted both online and in paper format, depending on the candidate's preferred mode of access. The main aim of the exam is to test the candidate's legal knowledge, analyze their abilities to apply insurance law principles in different scenarios, and evaluate their comprehension and understanding of various legal concepts.
CII E05 Pre-Exam Practice Tests | 2Pass4sure: https://www.2pass4sure.com/Insurance-Law-M05/E05-actual-exam-braindumps.html
E05 practice test questions, answers, explanations: https://drive.google.com/open?id=1Zz-ddtnoQHlcR00ak-quv4EzydaO6qYI