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CII E05 real answers - Examination element of M05 Insurance law

E05
  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: Sep 11, 2025
  • Q & A: 52 Questions and Answers
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CII Examination element of M05 Insurance law Sample Questions:

1. For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must

A) not unreasonably reject an insured's claim.
B) provide reasonable guidance to an insured to help him make a claim.
C) handle a claims notification within 14 days.
D) settle a claim promptly once settlement has been agreed.


2. A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under

A) a condition precedent to liability.
B) tort.
C) statute.
D) a condition subsequent to liability.


3. 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) Power of Attorney.
B) Trust.
C) Coinsurance.
D) Lien.


4. When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of

A) trespass to goods, conversion and nuisance only,
B) trespass to goods and conversion only.
C) trespass to goods, conversion, nuisance and battery.
D) trespass to goods only.


5. As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because

A) the misrepresentation was innocent.
B) the premium was paid by monthly installments.
C) no claim had been submitted or paid.
D) the misrepresentation was fraudulent.


Solutions:

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

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