CII E05 Q&A - in .pdf

  • E05 pdf
  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Jun 01, 2026
  • Q & A: 52 Questions and Answers
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  • Updated: Jun 01, 2026
  • Q & A: 52 Questions and Answers
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CII E05 Q&A - Testing Engine

  • E05 Testing Engine
  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Jun 01, 2026
  • Q & A: 52 Questions and Answers
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CII Examination element of M05 Insurance law Sample Questions:

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

A) both parties to the contract are equal in wrongdoing.
B) the contract is against public policy but not substantive law.
C) the illegality makes the contract voidable rather than void.
D) the legal portion of the contract can be severed from the illega portion.


2. At what stage is insurable interest required for a marine cargo insurance policy?

A) Throughout the duration of the contract.
B) At both inception of the policy and at the time of the loss.
C) At inception of the policy only.
D) At the time of the loss only.


3. 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) The insurer at all times.
B) Paul as it is a consumer contract.
C) No one as Tim is not a party to the insurance contract.
D) Both the insurer and Paul at different times.


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

A) To reduce physical hazard and to discourage profiteering.
B) To reduce moral hazard and to discourage wagering.
C) To reduce moral hazard and to discourage profiteering.
D) To reduce physical hazard and to discourage wagering.


5. 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 subrogation action against the manufacturer of the tumble dryer.
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 breach of a warranty requiring the burglar alarm to be set.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: D
Question # 3
Answer: A
Question # 4
Answer: B
Question # 5
Answer: C

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