[Aug-2026] Free E05 Exam Questions E05 Actual Free Exam Questions
Verified E05 dumps and 52 unique 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.
CII E05 examination covers various topics, including the laws and regulations that apply to insurance contracts, policy interpretation, and claims handling. Candidates will be tested on their knowledge of the legal and regulatory frameworks that govern insurance companies' operations and the interactions between insurance companies and their customers.
NEW QUESTION # 21
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. 15 years.
- B. 3 years.
- C. 9 years.
- D. 6 years.
Answer: B
NEW QUESTION # 22
In terms of private motor insurance, a renewal offer can be accepted
- A. by any third party.
- B. by the proposer acting in reliance of the offer.
- C. only by the proposer personally.
- D. only by written communication.
Answer: B
NEW QUESTION # 23
The principle of subrogation prevents a policyholder from profiting from
- A. claiming under both his insurance policy and against any negligent third party.
- B. assigning abandonment rights to the insurer.
- C. retaining salvaged property.
- D. submitting a full claim recovery under more than one insurance policy.
Answer: A
NEW QUESTION # 24
Ambiguous terms in a household insurance contract are generally construed against the
- A. insurer due to the contra proferentem rule.
- B. policyholder due to the literal rule.
- C. insurer due to the ejusdem generis rule.
- D. policyholder due to the noscitur a sociis rule.
Answer: A
NEW QUESTION # 25
The proximate cause of a loss is best described as the
- A. first peril to cause the loss.
- B. most dominant cause of the loss.
- C. final peril to cause the loss.
- D. most remote cause of the loss.
Answer: B
NEW QUESTION # 26
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. Privilege.
- C. Prescription.
- D. Statutory authority.
- E. Honest opinion.
Answer: B,E
NEW QUESTION # 27
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. Death of the agent.
- D. Disclosure of the name of the principal.
Answer: B,C
NEW QUESTION # 28
What is the most common for of corporation?
- A. Chartered corporation.
- B. Statutory corporation.
- C. Registered corporation.
- D. Corporation sole.
Answer: C
NEW QUESTION # 29
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. On submission of a claim.
- B. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- C. Where there is a variation in the insured risk.
- D. From the date of a breach of warranty.
Answer: C
NEW QUESTION # 30
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. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
- B. avoid the claim automatically due to the breach of the policy condition.
- C. settle the claim and recover its outlay from the insured.
- D. settle the claim and cancel the insurance policy from inception.
Answer: B
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. forms the contract with the insurer.
- B. assigns the contract to a third party.
- C. signs and submits the completed proposal form to the insurer.
- D. dies and his estate submits a claim to the insurer.
Answer: A
NEW QUESTION # 32
A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?
- A. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
- B. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
- C. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
- D. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
Answer: B
NEW QUESTION # 33
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. Upon the request of any person(s) interested in the buildings.
- B. Where there is underinsurance.
- C. Where the building was destroyed by an explosion.
- D. When fraud or arson by the insured is suspected.
Answer: A,D
NEW QUESTION # 34
The branch of law particularly relevant when handling negligence claims is
- A. civil law.
- B. administrative.
- C. constitutional law.
- D. public law.
Answer: A
NEW QUESTION # 35
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. No one as Tim is not a party to the insurance contract.
- B. Paul as it is a consumer contract.
- C. Both the insurer and Paul at different times.
- D. The insurer at all times.
Answer: 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
In what circumstances is abandonment automatic under a marine hull insurance policy?
- A. The actual total loss of the vessel.
- B. The insured has sent a formal notice of abandonment.
- C. The insured has performed an action of abandonment.
- D. The constructive total loss of the vessel.
Answer: A
NEW QUESTION # 38
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. £9,000,000
- B. £5,000,000
- C. £10,000,000
- D. £7,500,000
Answer: A
NEW QUESTION # 39
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. has been individually negotiated and is to the detriment of either one of the parties.
- C. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- D. does not restrict liability for death or personal injury.
Answer: C
NEW QUESTION # 40
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 insurer only.
- B. It is shared between the insurer and the insured.
- C. The State
- D. The insured only.
Answer: D
NEW QUESTION # 41
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CII E05 certification exam is designed to test the understanding of candidates in the area of insurance law. E05 exam covers key topics related to the legal aspects of insurance, such as the principles of insurance contract law, the regulation of insurance business, the legal framework for insurance intermediaries, and the legal obligations of insurance professionals. Examination element of M05 Insurance law certification is specifically designed for those who work in the insurance industry, including brokers, underwriters, claims handlers, and insurance managers.
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