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CII E05 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Nature and Sources of English Law and Natural Legal Persons | - Nature and sources of English law
|
| Topic 2: Insurance Claims | - Claims process and legal principles
|
| Topic 3: Law of Contract | - Contract formation and operation
|
| Topic 4: Law of Agency and Insurance | - Agency relationships
|
| Topic 5: Formation of Insurance Contracts | - Insurance contract principles
|
| Topic 6: Indemnity and Measurement of Loss | - Application of indemnity
|
| Topic 7: Insurance Contract Terms and Vitiating Factors | - Policy terms and validity
|
| Topic 8: Subrogation and Contribution | - Recovery and sharing of losses
|
| Topic 9: Law of Torts | - Principles of tort law
|
CII Examination element of M05 Insurance law Sample Questions:
Question 1
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 basis of the contract clause.
B. an exception clause.
C. a continuing warranty.
D. an express term.
Question 2
Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
A. £5,000,000
B. £9,000,000
C. £10,000,000
D. £7,500,000
Question 3
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
A. From the date of a breach of warranty.
B. On submission of a claim.
C. Where there is a variation in the insured risk.
D. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
Question 4
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. settle the claim and cancel the insurance policy from inception.
B. settle the claim and recover its outlay from the insured.
C. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
D. avoid the claim automatically due to the breach of the policy condition.
Question 5
The principle of subrogation prevents a policyholder from profiting from
A. retaining salvaged property.
B. assigning abandonment rights to the insurer.
C. submitting a full claim recovery under more than one insurance policy.
D. claiming under both his insurance policy and against any negligent third party.
Solutions:
| Question 1 Answer: A,D | Question 2 Answer: B | Question 3 Answer: C | Question 4 Answer: D | Question 5 Answer: D |
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