CII E05 Actual Free Exam Questions & Community Discussion

Exam Code/Number: E05
Exam Name/Title: Examination element of M05 Insurance law
Certification Provider: CII
Corresponding Certification: Insurance Law (M05)

Exam Questions: 52
Updated On: Sep 01, 2026

Question #1

When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?

A. It does not apply as the duty is to take reasonable care not to make a misrepresentation.

B. On submission of a claim.

C. Where there is a variation in the insured risk.

D. From the date of a breach of warranty.

Discussion 0

Correct Answer: C Vote an answer

Question #2

What are the main objectives of the principle of insurable interest?

A. To reduce physical hazard and to discourage profiteering.

B. To reduce physical hazard and to discourage wagering.

C. To reduce moral hazard and to discourage wagering.

D. To reduce moral hazard and to discourage profiteering.

Discussion 0

Correct Answer: C Vote an answer

Question #3

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

C. handle a claims notification within 14 days.

D. not unreasonably reject an insured's claim.

Discussion 0

Correct Answer: A,B,D Vote an answer

Question #4

A claimant may possibly recover money transferred under an illegal contract when

A. the legal portion of the contract can be severed from the illega portion.

B. the contract is against public policy but not substantive law.

C. the illegality makes the contract voidable rather than void.

D. both parties to the contract are equal in wrongdoing.

Discussion 0

Correct Answer: D Vote an answer

Question #5

Insurance agencies are usually created by way of

A. unilateral agreement.

B. deed of agreement.

C. implied agreement.

D. express agreement.

Discussion 0

Correct Answer: D Vote an answer

Question #6

How can an agency relationship be best described?

A. A person has ratified another party's action.

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 transferred his obligations under a contract to another party.

D. A person has the authority to act on behalf of another party.

Discussion 0

Correct Answer: D Vote an answer

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