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E05 CII Examination element of M05 Insurance law Free Practice Exam Questions (2025 Updated)

Prepare effectively for your CII E05 Examination element of M05 Insurance law certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.

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Total 50 questions

In terms of private motor insurance, a renewal offer can be accepted

A.

by the proposer acting in reliance of the offer.

B.

only by written communication.

C.

only by the proposer personally.

D.

by any third party.

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

A.

policyholder due to the literal rule.

B.

policyholder due to the noscitur a sociis rule.

C.

insurer due to the contra proferentem rule.

D.

insurer due to the ejusdem generis rule.

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 must be evidenced in documentary form.

C.

It may be oral or in writing.

D.

It may be implied by conduct.

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.

The insured has a duty to ensure that the insurer's subrogation rights are maintained.

C.

Cover is suspended whilst the insurer pursues an action for subrogation.

D.

The insurer's subrogation rights will not be exercised against certain parties associated with the insured.

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.

tort.

B.

a condition subsequent to liability.

C.

a condition precedent to liability.

D.

statute.

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 an organisation with a separate legal existence to its membership.

B.

It is not treated as a separate legal entity.

C.

It is answerable to its shareholders or members.

D.

It is a legal person representing one official position.

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 return the claim settlement in exchange for the painting.

C.

Bill must buy the painting back.

D.

Bill may keep the claim settlement and also keep the painting.

In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer

A.

assigns the contract to a third party.

B.

dies and his estate submits a claim to the insurer.

C.

forms the contract with the insurer.

D.

signs and submits the completed proposal form to the insurer.

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 suspensive condition.

B.

A condition precedent to the contract.

C.

A condition precedent to liability.

D.

A collateral condition.

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.

The insured only.

B.

The insurer only.

C.

The State

D.

It is shared between the insurer and the insured.

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.

handle a claims notification within 14 days.

C.

provide reasonable guidance to an insured to help him make a claim.

D.

not unreasonably reject an insured's claim.

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.

Honest opinion.

B.

Privilege.

C.

Statutory authority.

D.

Necessity.

E.

Prescription.

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.

25% for personal injury cases and 35% for employment tribunal cases.

C.

35% for both cases.

D.

50% for both cases.

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

A.

prudent underwriter.

B.

diligent broker.

C.

reasonable person.

D.

honest proposer.

For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as

A.

an express term.

B.

a continuing warranty.

C.

an exception clause.

D.

a basis of the contract clause.

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Total 50 questions
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