E05 Tested & Approved Insurance Law (M05) Study Materials
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CII E05 exam is a critical examination element of the M05 Insurance Law certification. E05 exam is designed to assess candidates' knowledge and understanding of insurance law in the UK. Examination element of M05 Insurance law certification is a requirement for insurance practitioners who wish to advance their careers and become qualified insurance lawyers.
NEW QUESTION # 10
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 precedent to liability.
- B. statute.
- C. tort.
- D. a condition subsequent to liability.
Answer: B
NEW QUESTION # 11
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. Case law.
- C. Legislation.
- D. International treaties.
Answer: B,C
NEW QUESTION # 12
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 # 13
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 there is a breach of a warranty requiring the burglar alarm to be set.
- B. If the tumble dryer is covered by extended warranty insurance.
- C. If the policyholder exaggerates the value of the claim.
- D. If there is a subrogation action against the manufacturer of the tumble dryer.
Answer: C
NEW QUESTION # 14
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. handle a claims notification within 14 days.
- C. not unreasonably reject an insured's claim.
- D. settle a claim promptly once settlement has been agreed.
Answer: A,C,D
NEW QUESTION # 15
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 3 years.
- B. 15 years.
- C. 9 years.
- D. 6 years.
Answer: A
NEW QUESTION # 16
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods, conversion, nuisance and battery.
- B. trespass to goods only.
- C. trespass to goods, conversion and nuisance only,
- D. trespass to goods and conversion only.
Answer: B
NEW QUESTION # 17
For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?
- A. Disclosure of the name of the principal.
- B. Death of the agent.
- C. Bankruptcy of the principal.
- D. Bankruptcy of the agent.
Answer: B,C
NEW QUESTION # 18
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. It is shared between the insurer and the insured.
- B. The insured only.
- C. The State
- D. The insurer only.
Answer: B
NEW QUESTION # 19
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. forms the contract with the insurer.
- B. signs and submits the completed proposal form to the insurer.
- C. dies and his estate submits a claim to the insurer.
- D. assigns the contract to a third party.
Answer: A
NEW QUESTION # 20
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. £5,000
- B. £3,000
- C. £15,000
- D. £6,000
Answer: A
NEW QUESTION # 21
For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?
- A. A merger between two major insurance companies.
- B. An overlap in cover between two different types of insurance policy.
- C. The inadvertent non-cancellation of a policy when a new policy is taken out.
- D. A deliberate attempt to obtain the proceeds of two policies.
Answer: B,D
NEW QUESTION # 22
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. Cover is suspended whilst the insurer pursues an action for subrogation.
- B. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- C. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- D. The doctrine of subrogation is excluded from the policy.
Answer: B
NEW QUESTION # 23
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The delay in obtaining the correct medical treatment.
- B. The unhygienic washing of the dog bite.
- C. The original physical injury of the dog bite.
- D. The delay in seeking medical treatment.
Answer: C
NEW QUESTION # 24
As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
- A. the misrepresentation was innocent.
- B. the misrepresentation was fraudulent.
- C. no claim had been submitted or paid.
- D. the premium was paid by monthly installments.
Answer: A
NEW QUESTION # 25
How can an agency relationship be best described?
- A. A person has ratified another party's action.
- B. A person has the authority to act on behalf of another party.
- C. 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.
- D. A person has transferred his obligations under a contract to another party.
Answer: B
NEW QUESTION # 26
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. a person holding a dominant position over Liz.
- B. Liz's husband.
- C. Liz's independent financial adviser.
- D. a person holding a senior position at Liz's bank.
Answer: A
NEW QUESTION # 27
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CII E05 certification exam is an excellent qualification for individuals who are looking to enhance their knowledge of insurance law and regulations. Examination element of M05 Insurance law certification is internationally recognized and highly valued by employers in the insurance industry, making it an essential element of M05 Insurance Law. With its comprehensive coverage of legal principles and regulatory frameworks, the CII E05 certification exam is an excellent investment for anyone looking to advance their career in the insurance industry.
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