CII E05 : Examination element of M05 Insurance law

E05 real exams

Exam Code: E05

Exam Name: Examination element of M05 Insurance law

Updated: Jun 15, 2026

Q & A: 52 Questions and Answers

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CII Examination element of M05 Insurance law Sample Questions:

1. A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?

A) Pay the claim in full.
B) Reject the claim for breach of warranty.
C) Avoid the policy ab initio.
D) Make an ex-gratia payment.


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


3. 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) An overlap in cover between two different types of insurance policy.
C) A merger between two major insurance companies.
D) The inadvertent non-cancellation of a policy when a new policy is taken out.


4. Ambiguous terms in a household insurance contract are generally construed against the

A) insurer due to the ejusdem generis rule.
B) policyholder due to the noscitur a sociis rule.
C) insurer due to the contra proferentem rule.
D) policyholder due to the literal rule.


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


Solutions:

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

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