[Nov 21, 2023] Get to the Top with E05 Practice Exam Questions

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NEW QUESTION # 17
What are the main objectives of the principle of insurable interest?

• A. To reduce physical hazard and to discourage profiteering.
• B. To reduce physical hazard and to discourage wagering.
• C. To reduce moral hazard and to discourage profiteering.
• D. To reduce moral hazard and to discourage wagering.

Answer: D

NEW QUESTION # 18
The test of the materiality of facts in an insurance contract is defined according to the opinion of a

• A. reasonable person.
• B. honest proposer.
• C. prudent underwriter.
• D. diligent broker.

Answer: C

NEW QUESTION # 19
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. a basis of the contract clause.
• C. an exception clause.
• D. an express term.

Answer: B,D

NEW QUESTION # 20
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. Reject the claim, but maintain the policy.
• C. Apply any terms it would have applied if the misrepresentation had not taken place.
• D. Reduce the claim amount in proportion to the premium it would have charged.

Answer: C,D

NEW QUESTION # 21
A claimant may possibly recover money transferred under an illegal contract when

• A. the legal portion of the contract can be severed from the illega portion.
• B. both parties to the contract are equal in wrongdoing.
• C. the contract is against public policy but not substantive law.
• D. the illegality makes the contract voidable rather than void.

Answer: B

NEW QUESTION # 22
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 an express term in reaching or recording an agreement?

• A. It will usually override any implied term which conflicts with it.
• B. It must be evidenced in documentary form.
• C. It may be implied by conduct.
• D. It may be oral or in writing.

Answer: A,D

NEW QUESTION # 23
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 the tumble dryer is covered by extended warranty insurance.
• C. If there is a subrogation action against the manufacturer of the tumble dryer.
• D. If the policyholder exaggerates the value of the claim.

Answer: D

NEW QUESTION # 24
What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?

• A. 35% for personal injury cases and 25% for employment tribunal cases.
• B. 50% for both cases.
• C. 25% for personal injury cases and 35% for employment tribunal cases.
• D. 35% for both cases.

Answer: C

NEW QUESTION # 25
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. Official law reports.
• B. Case law.
• C. Legislation.
• D. International treaties.

Answer: B,C

NEW QUESTION # 26
How can an agency relationship be best described?

• A. A person has the authority to act on behalf of another party.
• B. A person has transferred his obligations under a contract to another party.
• C. A person has ratified another party's action.
• D. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.

Answer: A

NEW QUESTION # 27
In terms of private motor insurance, a renewal offer can be accepted

• A. only by the proposer personally.
• B. by the proposer acting in reliance of the offer.
• C. by any third party.
• D. only by written communication.

Answer: B

NEW QUESTION # 28
The branch of law particularly relevant when handling negligence claims is

• A. civil law.
• B. public law.
• C. constitutional law.
• D. administrative.

Answer: A

NEW QUESTION # 29
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 insured only.
• B. It is shared between the insurer and the insured.
• C. The State
• D. The insurer only.

Answer: A

NEW QUESTION # 30
A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?

• A. A suspensive condition.
• B. A collateral condition.
• C. A condition precedent to the contract.
• D. A condition precedent to liability.

Answer: D

NEW QUESTION # 31
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. 3 years.
• B. 15 years.
• C. 6 years.
• D. 9 years.

Answer: A

NEW QUESTION # 32
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. signs and submits the completed proposal form to the insurer.
• C. dies and his estate submits a claim to the insurer.
• D. assigns the contract to a third party.

Answer: A

NEW QUESTION # 33
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. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
• C. avoid the claim automatically due to the breach of the policy condition.
• D. settle the claim and recover its outlay from the insured.

Answer: C

NEW QUESTION # 34
In what circumstances is abandonment automatic under a marine hull insurance policy?

• A. The insured has performed an action of abandonment.
• B. The insured has sent a formal notice of abandonment.
• C. The actual total loss of the vessel.
• D. The constructive total loss of the vessel.

Answer: C

NEW QUESTION # 35
What is the most common for of corporation?

• A. Registered corporation.
• B. Chartered corporation.
• C. Statutory corporation.
• D. Corporation sole.

Answer: A

NEW QUESTION # 36
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The CII E05 exam covers a wide range of topics, including the principles of insurance law, the formation of insurance contracts, the duties and obligations of insurers and policyholders, and the regulation of the insurance industry. E05 exam also examines the legal and regulatory framework governing the distribution of insurance products and the resolution of disputes between policyholders and insurers.

CII E05 exam covers a wide range of topics related to insurance law, including the legal principles that govern insurance contracts, the regulatory frameworks that insurance companies must adhere to, and the responsibilities of insurance professionals towards their clients. E05 exam is divided into two sections, with the first section testing candidates on their knowledge of insurance law and the second section assessing their ability to apply this knowledge to practical scenarios.

CII E05 exam is an essential step in the career progression of insurance professionals, as it demonstrates their competence in insurance law and regulation. By successfully completing the exam, candidates can enhance their career prospects and gain a better understanding of the legal and regulatory frameworks that govern the insurance industry.

 

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