Aug-2026 FREE CII E05 PRACTICE QUESTIONS AND ANSWERS UPDATES
DEMO FREE BEFORE YOU BUY E05 DUMPS
To prepare for the E05 exam, candidates should take advantage of the numerous study resources that are available, including textbooks, online courses, and practice exams. Many candidates also find it helpful to work with a tutor or study group to ensure that they are fully prepared for the exam.
CII E05 exam is challenging and requires a significant amount of preparation to ensure success. Candidates should have a good understanding of the M05 Insurance Law module and should be familiar with the key legal principles and concepts covered in the course material. Additionally, candidates should be comfortable with the format and structure of multiple-choice exams and should have a good understanding of the key exam techniques, such as time management and how to approach difficult questions.
NEW QUESTION # 30
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. Honest opinion.
- B. Statutory authority.
- C. Prescription.
- D. Privilege.
- E. Necessity.
Answer: A,D
NEW QUESTION # 31
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 the time of the loss only.
- D. At inception of the policy only.
Answer: C
NEW QUESTION # 32
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. International treaties.
- B. Legislation.
- C. Case law.
- D. Official law reports.
Answer: B,C
NEW QUESTION # 33
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. Where there is a variation in the insured risk.
- B. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- C. On submission of a claim.
- D. From the date of a breach of warranty.
Answer: A
NEW QUESTION # 34
For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?
- A. The inadvertent non-cancellation of a policy when a new policy is taken out.
- B. An overlap in cover between two different types of insurance policy.
- C. A deliberate attempt to obtain the proceeds of two policies.
- D. A merger between two major insurance companies.
Answer: B,C
NEW QUESTION # 35
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?
- A. It is a legal person representing one official position.
- B. It is not treated as a separate legal entity.
- C. It is answerable to its shareholders or members.
- D. It is an organisation with a separate legal existence to its membership.
Answer: C,D
NEW QUESTION # 36
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 physical hazard and to discourage wagering.
- D. To reduce moral hazard and to discourage profiteering.
Answer: B
NEW QUESTION # 37
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. has been individually negotiated and is to the detriment of either one of the parties.
- B. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- C. provides insurance where the scope of cover is narrow compared to the premium charged.
- D. does not restrict liability for death or personal injury.
Answer: B
NEW QUESTION # 38
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 the building was destroyed by an explosion.
- C. Where there is underinsurance.
- D. When fraud or arson by the insured is suspected.
Answer: A,D
NEW QUESTION # 39
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. signs and submits the completed proposal form to the insurer.
- B. dies and his estate submits a claim to the insurer.
- C. assigns the contract to a third party.
- D. forms the contract with the insurer.
Answer: D
NEW QUESTION # 40
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. a person holding a dominant position over Liz.
- B. Liz's independent financial adviser.
- C. Liz's husband.
- D. a person holding a senior position at Liz's bank.
Answer: A
NEW QUESTION # 41
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
- A. applies a specific exclusion within the policy wording.
- B. provides coverage that is more restrictive than that of other insurers.
- C. imposes a premium loading.
- D. requires notification of a claim within a very short time period.
Answer: D
NEW QUESTION # 42
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 continuing warranty.
- B. an express term.
- C. an exception clause.
- D. a basis of the contract clause.
Answer: B,D
NEW QUESTION # 43
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 breach of a warranty requiring the burglar alarm to be set.
- B. If there is a subrogation action against the manufacturer of the tumble dryer.
- C. If the tumble dryer is covered by extended warranty insurance.
- D. If the policyholder exaggerates the value of the claim.
Answer: D
NEW QUESTION # 44
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Avoid the contract, refuse all claims and keep the premium.
- B. Reduce the claim amount in proportion to the premium it would have charged.
- C. Reject the claim, but maintain the policy.
- D. Apply any terms it would have applied if the misrepresentation had not taken place.
Answer: B,D
NEW QUESTION # 45
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. the misrepresentation was fraudulent.
- D. no claim had been submitted or paid.
Answer: A
NEW QUESTION # 46
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. £7,500,000
- C. £5,000,000
- D. £10,000,000
Answer: A
NEW QUESTION # 47
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- B. Cover is suspended whilst the insurer pursues an action for subrogation.
- C. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- D. The doctrine of subrogation is excluded from the policy.
Answer: C
NEW QUESTION # 48
The principle of subrogation prevents a policyholder from profiting from
- A. assigning abandonment rights to the insurer.
- B. claiming under both his insurance policy and against any negligent third party.
- C. submitting a full claim recovery under more than one insurance policy.
- D. retaining salvaged property.
Answer: B
NEW QUESTION # 49
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
- A. £3,000
- B. £6,000
- C. £5,000
- D. £15,000
Answer: C
NEW QUESTION # 50
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