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Last Updated: Oct 03, 2026

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CII E05 Exam Syllabus Topics:

SectionObjectives
Law of Torts- Principles of tort law
  • 1. Negligence
  • 2. Liability and remedies
  • 3. Nuisance
  • 4. Defamation
Formation of Insurance Contracts- Insurance contract principles
  • 1. Insurable interest
  • 2. Utmost good faith
  • 3. Consumer and commercial insurance law
  • 4. Disclosure and fair presentation
Law of Agency and Insurance- Agency relationships
  • 1. Duties and liabilities
  • 2. Authority of agents
  • 3. Creation of agency
Insurance Claims- Claims process and legal principles
  • 1. Notification and handling of claims
  • 2. Claims settlement
  • 3. Rights and obligations of parties
Indemnity and Measurement of Loss- Application of indemnity
  • 1. Calculation of losses
  • 2. Methods of indemnification
Insurance Contract Terms and Vitiating Factors- Policy terms and validity
  • 1. Fraud
  • 2. Effects of breach
  • 3. Conditions and warranties
  • 4. Representations and misrepresentations
Nature and Sources of English Law and Natural Legal Persons- Nature and sources of English law
  • 1. Natural and legal persons
  • 2. Legal systems and sources of law
Law of Contract- Contract formation and operation
  • 1. Offer and acceptance
  • 2. Terms of contract
  • 3. Consideration
  • 4. Breach and remedies
Subrogation and Contribution- Recovery and sharing of losses
  • 1. Subrogation rights
  • 2. Contribution between insurers

CII Examination element of M05 Insurance law Sample Questions:

Question #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. handle a claims notification within 14 days.
  • B. not unreasonably reject an insured's claim.
  • C. provide reasonable guidance to an insured to help him make a claim.
  • D. settle a claim promptly once settlement has been agreed.
Reveal Solution  Discussion  0

Correct Answer: B,C,D  🗳️

Question #2

In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury

  • A. as a result of stress or harassment at work.
  • B. through fear for his own safety in an accident.
  • C. as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
  • D. through fear for the safety of another person involved in an accident which he witnessed.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

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. Prescription.
  • B. Privilege.
  • C. Honest opinion.
  • D. Necessity.
  • E. Statutory authority.
Reveal Solution  Discussion  0

Correct Answer: B,C  🗳️

Question #4

A claimant may possibly recover money transferred under an illegal contract when

  • A. both parties to the contract are equal in wrongdoing.
  • B. the illegality makes the contract voidable rather than void.
  • C. the contract is against public policy but not substantive law.
  • D. the legal portion of the contract can be severed from the illega portion.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #5

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 the tumble dryer is covered by extended warranty insurance.
  • B. If the policyholder exaggerates the value of the claim.
  • C. If there is a subrogation action against the manufacturer of the tumble dryer.
  • D. If there is a breach of a warranty requiring the burglar alarm to be set.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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