CII E05 real exam prep : Examination element of M05 Insurance law

  • Exam Code: E05
  • Exam Name: Examination element of M05 Insurance law
  • Updated: May 31, 2026
  • Q&As: 52 Questions and Answers

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CII Examination element of M05 Insurance law Sample Questions:

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


2. How can an agency relationship be best described?

A) A person has ratified another party's action.
B) 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.
C) A person has the authority to act on behalf of another party.
D) A person has transferred his obligations under a contract to another party.


3. Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?

A) The unhygienic washing of the dog bite.
B) The delay in obtaining the correct medical treatment.
C) The original physical injury of the dog bite.
D) The delay in seeking medical treatment.


4. A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?

A) Cover for both parties would be invalidated as the cover is likely to be a composite policy.
B) Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
C) Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
D) Cover for both parties would be invalidated as the cover is likely to be a joint policy.


5. 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 insurer only.
B) It is shared between the insurer and the insured.
C) The State
D) The insured only.


Solutions:

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

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