CII E05 Exam : Examination element of M05 Insurance law

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Jul 27, 2026
  • Q & A: 52 Questions and Answers

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CII E05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Indemnity and Measurement of Loss- Application of indemnity
  • 1. Methods of indemnification
  • 2. Calculation of losses
Topic 2: Law of Agency and Insurance- Agency relationships
  • 1. Authority of agents
  • 2. Duties and liabilities
  • 3. Creation of agency
Topic 3: Formation of Insurance Contracts- Insurance contract principles
  • 1. Consumer and commercial insurance law
  • 2. Utmost good faith
  • 3. Disclosure and fair presentation
  • 4. Insurable interest
Topic 4: Insurance Claims- Claims process and legal principles
  • 1. Notification and handling of claims
  • 2. Rights and obligations of parties
  • 3. Claims settlement
Topic 5: 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
Topic 6: Law of Torts- Principles of tort law
  • 1. Defamation
  • 2. Liability and remedies
  • 3. Negligence
  • 4. Nuisance
Topic 7: Insurance Contract Terms and Vitiating Factors- Policy terms and validity
  • 1. Fraud
  • 2. Representations and misrepresentations
  • 3. Effects of breach
  • 4. Conditions and warranties
Topic 8: Law of Contract- Contract formation and operation
  • 1. Breach and remedies
  • 2. Offer and acceptance
  • 3. Terms of contract
  • 4. Consideration
Topic 9: Subrogation and Contribution- Recovery and sharing of losses
  • 1. Subrogation rights
  • 2. Contribution between insurers

CII Examination element of M05 Insurance law Sample Questions:

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

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


2. When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of

A) trespass to goods and conversion only.
B) trespass to goods only.
C) trespass to goods, conversion and nuisance only,
D) trespass to goods, conversion, nuisance and battery.


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

A) policyholder due to the noscitur a sociis rule.
B) policyholder due to the literal rule.
C) insurer due to the contra proferentem rule.
D) insurer due to the ejusdem generis rule.


4. Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?

A) £10,000,000
B) £7,500,000
C) £9,000,000
D) £5,000,000


5. 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) It is shared between the insurer and the insured.
C) The State
D) The insurer only.


Solutions:

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

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