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CII E05 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Claims and Indemnity Principles15%- Measure of indemnity
- Subrogation and contribution
- Notification and proof of loss
Topic 2: Law of Torts15%- Principles of negligence
- Other torts: trespass, nuisance, breach of statutory duty
- Application to liability insurance
Topic 3: Law of Agency10%- Authority, rights and duties
- Application to insurance intermediaries
- Creation and types of agency
Topic 4: Nature and Sources of English Law15%- Legal personality and capacity
- Sources of law: statute, common law, EU influence
- Legal system and structure
Topic 5: Law of Contract15%- Breach and remedies
- Essentials of a valid contract
- Terms, conditions and representations
Topic 6: Formation of Insurance Contracts15%- Insurable interest
- Utmost good faith and disclosure
- Offer, acceptance and consideration
Topic 7: Interpretation and Vitiation of Insurance Contracts15%- Factors vitiating the contract
- Rules of construction
- Warranties, conditions and exceptions

CII Examination element of M05 Insurance law Sample Questions:

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.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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 breach of a warranty requiring the burglar alarm to be set.
  • C. If there is a subrogation action against the manufacturer of the tumble dryer.
  • D. If the policyholder exaggerates the value of the claim.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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. Official law reports.
  • B. Legislation.
  • C. International treaties.
  • D. Case law.
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

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. a continuing warranty.
  • B. an exception clause.
  • C. an express term.
  • D. a basis of the contract clause.
Reveal Solution  Discussion  0

Correct Answer: C,D  🗳️

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.
Reveal Solution  Discussion  0

Correct Answer: A,C,D  🗳️

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