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CII E05 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Law of Torts | 15% | - Other torts: trespass, nuisance, breach of statutory duty - Principles of negligence - Application to liability insurance |
| Topic 2: Interpretation and Vitiation of Insurance Contracts | 15% | - Warranties, conditions and exceptions - Rules of construction - Factors vitiating the contract |
| Topic 3: Law of Agency | 10% | - Creation and types of agency - Authority, rights and duties - Application to insurance intermediaries |
| Topic 4: Nature and Sources of English Law | 15% | - Legal system and structure - Sources of law: statute, common law, EU influence - Legal personality and capacity |
| Topic 5: Claims and Indemnity Principles | 15% | - Notification and proof of loss - Subrogation and contribution - Measure of indemnity |
| Topic 6: Law of Contract | 15% | - Essentials of a valid contract - Terms, conditions and representations - Breach and remedies |
| Topic 7: Formation of Insurance Contracts | 15% | - Offer, acceptance and consideration - Utmost good faith and disclosure - Insurable interest |
CII Examination element of M05 Insurance law Sample Questions:
1. 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) £5,000
B) £6,000
C) £3,000
D) £15,000
2. 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) A deliberate attempt to obtain the proceeds of two policies.
B) A merger between two major insurance companies.
C) An overlap in cover between two different types of insurance policy.
D) The inadvertent non-cancellation of a policy when a new policy is taken out.
3. 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) The insurer at all times.
C) Paul as it is a consumer contract.
D) Both the insurer and Paul at different times.
4. 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) Liz's independent financial adviser.
B) a person holding a senior position at Liz's bank.
C) a person holding a dominant position over Liz.
D) Liz's husband.
5. 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) From the date of a breach of warranty.
D) On submission of a claim.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A,C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |




