CII E05 Exam Questions : Examination element of M05 Insurance law

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Sep 08, 2026
  • Q&As: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Principles of Insurance Law- Fundamental legal principles affecting insurance contracts
- Nature and purpose of insurance law
Topic 2: Insurance Contract Formation- Offer, acceptance, consideration, and intention to create legal relations
- Policy wording and interpretation
Topic 3: Claims and Remedies- Claims handling process
- Fraud and avoidance of policies
- Subrogation and contribution
Topic 4: Liability and Tort Law- Occupiers’ liability
- Negligence principles
- Vicarious liability
Topic 5: Key Legal Principles in Insurance- Utmost good faith (uberrimae fidei)
- Insurable interest
- Disclosure and misrepresentation
- Warranties and conditions

CII Examination element of M05 Insurance law Sample Questions:

Question #1

Ambiguous terms in a household insurance contract are generally construed against the

  • A. policyholder due to the noscitur a sociis rule.
  • B. insurer due to the ejusdem generis rule.
  • C. insurer due to the contra proferentem rule.
  • D. policyholder due to the literal rule.
Answer: C
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. Statutory authority.
  • B. Privilege.
  • C. Prescription.
  • D. Honest opinion.
  • E. Necessity.
Answer: B,D
Question #3

In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury

  • A. as a result of stress or harassment at work.
  • B. through fear for the safety of another person involved in an accident which he witnessed.
  • C. through fear for his own safety in an accident.
  • D. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
Answer: C
Question #4

For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?

  • A. Where the building was destroyed by an explosion.
  • B. Where there is underinsurance.
  • C. When fraud or arson by the insured is suspected.
  • D. Upon the request of any person(s) interested in the buildings.
Answer: C,D
Question #5

John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

  • A. £3,000
  • B. £15,000
  • C. £6,000
  • D. £5,000
Answer: D

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