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CII E05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Nature and Sources of English Law and Natural Legal Persons- Nature and sources of English law
  • 1. Natural and legal persons
  • 2. Legal systems and sources of law
Topic 2: Insurance Claims- Claims process and legal principles
  • 1. Notification and handling of claims
  • 2. Claims settlement
  • 3. Rights and obligations of parties
Topic 3: Law of Contract- Contract formation and operation
  • 1. Consideration
  • 2. Breach and remedies
  • 3. Offer and acceptance
  • 4. Terms of contract
Topic 4: Law of Agency and Insurance- Agency relationships
  • 1. Authority of agents
  • 2. Creation of agency
  • 3. Duties and liabilities
Topic 5: Formation of Insurance Contracts- Insurance contract principles
  • 1. Disclosure and fair presentation
  • 2. Utmost good faith
  • 3. Insurable interest
  • 4. Consumer and commercial insurance law
Topic 6: Indemnity and Measurement of Loss- Application of indemnity
  • 1. Calculation of losses
  • 2. Methods of indemnification
Topic 7: Insurance Contract Terms and Vitiating Factors- Policy terms and validity
  • 1. Representations and misrepresentations
  • 2. Effects of breach
  • 3. Conditions and warranties
  • 4. Fraud
Topic 8: Subrogation and Contribution- Recovery and sharing of losses
  • 1. Contribution between insurers
  • 2. Subrogation rights
Topic 9: Law of Torts- Principles of tort law
  • 1. Liability and remedies
  • 2. Negligence
  • 3. Nuisance
  • 4. Defamation

CII Examination element of M05 Insurance law Sample Questions:

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.
Reveal Solution  Discussion  0

Correct Answer: A,D  🗳️

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
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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