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"Examination element of M05 Insurance law", also known as E05 exam, is a CII Certification. With the complete collection of questions and answers, BraindumpsPass has assembled to take you through 52 Q&As to your E05 Exam preparation. In the E05 exam resources, you will cover every field and category in Insurance Law (M05) Certification helping to ready you for your successful CII Certification.
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Law of Agency | 10% | - Application to insurance intermediaries - Authority, rights and duties - Creation and types of agency |
| Topic 2: Law of Contract | 15% | - Breach and remedies - Terms, conditions and representations - Essentials of a valid contract |
| Topic 3: Law of Torts | 15% | - Principles of negligence - Application to liability insurance - Other torts: trespass, nuisance, breach of statutory duty |
| Topic 4: Interpretation and Vitiation of Insurance Contracts | 15% | - Warranties, conditions and exceptions - Rules of construction - Factors vitiating the contract |
| Topic 5: Claims and Indemnity Principles | 15% | - Notification and proof of loss - Subrogation and contribution - Measure of indemnity |
| Topic 6: Formation of Insurance Contracts | 15% | - Utmost good faith and disclosure - Offer, acceptance and consideration - Insurable interest |
| Topic 7: Nature and Sources of English Law | 15% | - Legal system and structure - Legal personality and capacity - Sources of law: statute, common law, EU influence |
1. The test of the materiality of facts in an insurance contract is defined according to the opinion of a
A) diligent broker.
B) reasonable person.
C) prudent underwriter.
D) honest proposer.
2. Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill's claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill's position under his insurance policy?
A) Bill must buy the painting back.
B) Bill may exercise an option to buy the painting back.
C) Bill may keep the claim settlement and also keep the painting.
D) Bill must return the claim settlement in exchange for the painting.
3. For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?
A) Disclosure of the name of the principal.
B) Bankruptcy of the principal.
C) Death of the agent.
D) Bankruptcy of the agent.
4. 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) The insurer at all times.
B) Paul as it is a consumer contract.
C) Both the insurer and Paul at different times.
D) No one as Tim is not a party to the insurance contract.
5. Why may an insurer insert a continuing warranty into an insurance policy?
A) To enable an insurer to charge an additional premium if the warranty is continually breached.
B) To ensure that underinsurance is avoided at all times.
C) To encourage good risk management by the insured throughout the policy period.
D) To maintain the annual aggregate limit of liability throughout the policy period.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: B,C | Question # 4 Answer: A | Question # 5 Answer: C |
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