E05 Free Exam Questions and Answers PDF Updated on Dec-2023
Latest E05 Exam Dumps Recently Updated 52 Questions
CII E05 exam is a crucial component of the M05 Insurance Law qualification. Examination element of M05 Insurance law certification is designed to provide insurance professionals with a comprehensive understanding of the legal framework that underpins the insurance industry. E05 exam is an essential requirement for anyone who wishes to progress their career in the insurance sector, particularly for those who work in legal or regulatory roles.
NEW QUESTION # 18
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. provides insurance where the scope of cover is narrow compared to the premium charged.
- B. does not restrict liability for death or personal injury.
- C. has been individually negotiated and is to the detriment of either one of the parties.
- D. causes a significant imbalance in the parties' rights to the detriment of the consumer.
Answer: D
NEW QUESTION # 19
A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to
- A. avoid the claim automatically due to the breach of the policy condition.
- B. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
- C. settle the claim and recover its outlay from the insured.
- D. settle the claim and cancel the insurance policy from inception.
Answer: A
NEW QUESTION # 20
In terms of private motor insurance, a renewal offer can be accepted
- A. by the proposer acting in reliance of the offer.
- B. only by the proposer personally.
- C. by any third party.
- D. only by written communication.
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. Which special defences are available to the fort of libel?
- A. Necessity.
- B. Statutory authority.
- C. Privilege.
- D. Honest opinion.
- E. Prescription.
Answer: C,D
NEW QUESTION # 22
In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury
- A. as a result of stress or harassment at work.
- B. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
- C. through fear for his own safety in an accident.
- D. through fear for the safety of another person involved in an accident which he witnessed.
Answer: C
NEW QUESTION # 23
Insurance agencies are usually created by way of
- A. unilateral agreement.
- B. implied agreement.
- C. express agreement.
- D. deed of agreement.
Answer: C
NEW QUESTION # 24
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. Bankruptcy of the agent.
- B. Bankruptcy of the principal.
- C. Disclosure of the name of the principal.
- D. Death of the agent.
Answer: B,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 characteristics of an express term in reaching or recording an agreement?
- A. It must be evidenced in documentary form.
- B. It may be implied by conduct.
- C. It may be oral or in writing.
- D. It will usually override any implied term which conflicts with it.
Answer: C,D
NEW QUESTION # 26
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Apply any terms it would have applied if the misrepresentation had not taken place.
- B. Reduce the claim amount in proportion to the premium it would have charged.
- C. Avoid the contract, refuse all claims and keep the premium.
- D. Reject the claim, but maintain the policy.
Answer: A,B
NEW QUESTION # 27
For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?
- A. Where the building was destroyed by an explosion.
- B. Where there is underinsurance.
- C. When fraud or arson by the insured is suspected.
- D. Upon the request of any person(s) interested in the buildings.
Answer: C,D
NEW QUESTION # 28
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 # 29
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
- A. Coinsurance.
- B. Lien.
- C. Power of Attorney.
- D. Trust.
Answer: D
NEW QUESTION # 30
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. The State
- C. It is shared between the insurer and the insured.
- D. The insurer only.
Answer: A
NEW QUESTION # 31
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. signs and submits the completed proposal form to the insurer.
- B. forms the contract with the insurer.
- C. dies and his estate submits a claim to the insurer.
- D. assigns the contract to a third party.
Answer: B
NEW QUESTION # 32
Ambiguous terms in a household insurance contract are generally construed against the
- A. insurer due to the ejusdem generis rule.
- B. policyholder due to the literal rule.
- C. insurer due to the contra proferentem rule.
- D. policyholder due to the noscitur a sociis rule.
Answer: C
NEW QUESTION # 33
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 # 34
A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?
- A. A condition precedent to liability.
- B. A condition precedent to the contract.
- C. A suspensive condition.
- D. A collateral condition.
Answer: A
NEW QUESTION # 35
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. The inadvertent non-cancellation of a policy when a new policy is taken out.
- B. A merger between two major insurance companies.
- C. An overlap in cover between two different types of insurance policy.
- D. A deliberate attempt to obtain the proceeds of two policies.
Answer: C,D
NEW QUESTION # 36
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The doctrine of subrogation is excluded from the policy.
- B. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- C. Cover is suspended whilst the insurer pursues an action for subrogation.
- D. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
Answer: B
NEW QUESTION # 37
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?
- A. It is an organisation with a separate legal existence to its membership.
- B. It is answerable to its shareholders or members.
- C. It is a legal person representing one official position.
- D. It is not treated as a separate legal entity.
Answer: A,B
NEW QUESTION # 38
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