Updated Jan-2024 E05 Exam Practice Test Questions
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CII E05 Insurance law certification exam is an essential qualification for anyone looking to establish a career in the insurance industry. E05 exam tests the candidate's knowledge of the legal and regulatory framework that governs the insurance industry, including the principles of insurance law, contract law, and the legal aspects of insurance claims.
CII E05 certification exam is an essential element of M05 Insurance Law. E05 exam is designed to provide candidates with an in-depth understanding of the legal principles and regulatory frameworks that govern the insurance industry. Examination element of M05 Insurance law certification is an internationally recognized qualification that demonstrates a candidate's expertise in insurance law and regulations, making them highly sought after by employers in the insurance industry.
NEW QUESTION # 24
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. honest proposer.
- B. diligent broker.
- C. reasonable person.
- D. prudent underwriter.
Answer: D
NEW QUESTION # 25
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. International treaties.
- B. Legislation.
- C. Official law reports.
- D. Case law.
Answer: B,D
NEW QUESTION # 26
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. Necessity.
- B. Statutory authority.
- C. Prescription.
- D. Privilege.
- E. Honest opinion.
Answer: D,E
NEW QUESTION # 27
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- 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 doctrine of subrogation is excluded from the policy.
Answer: A
NEW QUESTION # 28
How can an agency relationship be best described?
- A. A person has the authority to act on behalf of another party.
- B. 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.
- C. A person has ratified another party's action.
- D. A person has transferred his obligations under a contract to another party.
Answer: A
NEW QUESTION # 29
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 illegality makes the contract voidable rather than void.
- C. both parties to the contract are equal in wrongdoing.
- D. the legal portion of the contract can be severed from the illega portion.
Answer: C
NEW QUESTION # 30
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. The insurer at all times.
- C. No one as Tim is not a party to the insurance contract.
- D. Paul as it is a consumer contract.
Answer: B
NEW QUESTION # 31
Insurance agencies are usually created by way of
- A. express agreement.
- B. deed of agreement.
- C. unilateral agreement.
- D. implied agreement.
Answer: A
NEW QUESTION # 32
In terms of private motor insurance, a renewal offer can be accepted
- A. only by the proposer personally.
- B. by any third party.
- C. only by written communication.
- D. by the proposer acting in reliance of the offer.
Answer: D
NEW QUESTION # 33
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 # 34
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. provide reasonable guidance to an insured to help him make a claim.
- B. not unreasonably reject an insured's claim.
- C. handle a claims notification within 14 days.
- D. settle a claim promptly once settlement has been agreed.
Answer: A,B,D
NEW QUESTION # 35
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. an exception clause.
- C. a continuing warranty.
- D. a basis of the contract clause.
Answer: A,D
NEW QUESTION # 36
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. through fear for his own safety in an accident.
- C. as a result of stress or harassment at work.
- D. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
Answer: B
NEW QUESTION # 37
The proximate cause of a loss is best described as the
- A. most remote cause of the loss.
- B. most dominant cause of the loss.
- C. final peril to cause the loss.
- D. first peril to cause the loss.
Answer: B
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. The insured only.
- B. It is shared between the insurer and the insured.
- C. The insurer only.
- D. The State
Answer: A
NEW QUESTION # 39
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 subsequent to liability.
- B. statute.
- C. tort.
- D. a condition precedent to liability.
Answer: B
NEW QUESTION # 40
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods only.
- B. trespass to goods, conversion and nuisance only,
- C. trespass to goods, conversion, nuisance and battery.
- D. trespass to goods and conversion only.
Answer: A
NEW QUESTION # 41
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CII E05 certification exam is an essential qualification for anyone looking to advance their career in the insurance industry. It is an internationally recognised qualification that can help individuals to demonstrate their knowledge and understanding of insurance law and regulation. E05 exam is computer-based and consists of 50 multiple-choice questions, and there is no coursework or practical assessment required. By passing E05 exam, individuals can enhance their career prospects and demonstrate their commitment to the insurance industry.
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