Free CII E05 Study Guides Exam Questions and Answer
E05 Exam Dumps, E05 Practice Test Questions
Successfully passing the CII E05 exam is essential for insurance professionals who want to advance their careers and gain a deeper understanding of the legal and regulatory aspects of the industry. E05 exam is also an important step towards achieving the CII Diploma in Insurance qualification, which is widely recognized as a benchmark of professionalism in the insurance industry. With its comprehensive coverage of key legal and regulatory topics, the CII E05 exam is an important tool for insurance professionals who want to stay up-to-date with the latest developments in the field.
NEW QUESTION # 28
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. 15 years.
- B. 6 years.
- C. 9 years.
- D. 3 years.
Answer: D
NEW QUESTION # 29
How can an agency relationship be best described?
- A. 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.
- B. A person has the authority to act on behalf of another party.
- C. A person has ratified another party's action.
- D. A person has transferred his obligations under a contract to another party.
Answer: B
NEW QUESTION # 30
The branch of law particularly relevant when handling negligence claims is
- A. constitutional law.
- B. public law.
- C. civil law.
- D. administrative.
Answer: C
NEW QUESTION # 31
According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer
- A. provides coverage that is more restrictive than that of other insurers.
- B. requires notification of a claim within a very short time period.
- C. applies a specific exclusion within the policy wording.
- D. imposes a premium loading.
Answer: B
NEW QUESTION # 32
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. no claim had been submitted or paid.
- C. the premium was paid by monthly installments.
- D. the misrepresentation was fraudulent.
Answer: A
NEW QUESTION # 33
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods and conversion only.
- B. trespass to goods, conversion, nuisance and battery.
- C. trespass to goods, conversion and nuisance only,
- D. trespass to goods only.
Answer: D
NEW QUESTION # 34
The principle of subrogation prevents a policyholder from profiting from
- A. assigning abandonment rights to the insurer.
- B. claiming under both his insurance policy and against any negligent third party.
- C. submitting a full claim recovery under more than one insurance policy.
- D. retaining salvaged property.
Answer: B
NEW QUESTION # 35
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. The inadvertent non-cancellation of a policy when a new policy is taken out.
- B. A deliberate attempt to obtain the proceeds of two policies.
- C. An overlap in cover between two different types of insurance policy.
- D. A merger between two major insurance companies.
Answer: B,C
NEW QUESTION # 36
Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
- A. £10,000,000
- B. £7,500,000
- C. £9,000,000
- D. £5,000,000
Answer: C
NEW QUESTION # 37
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 original physical injury of the dog bite.
- C. The delay in obtaining the correct medical treatment.
- D. The delay in seeking medical treatment.
Answer: B
NEW QUESTION # 38
Dan made a financial arrangement on behalf of Liz. However, Liz had the arrangement set aside by the court on the basis that she had been unduly influenced by Dan. To establish undue influence, the court must have specifically identified Dan as
- A. a person holding a senior position at Liz's bank.
- B. a person holding a dominant position over Liz.
- C. Liz's husband.
- D. Liz's independent financial adviser.
Answer: B
NEW QUESTION # 39
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer
- A. assigns the contract to a third party.
- B. dies and his estate submits a claim to the insurer.
- C. signs and submits the completed proposal form to the insurer.
- D. forms the contract with the insurer.
Answer: D
NEW QUESTION # 40
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 State
- B. The insurer only.
- C. It is shared between the insurer and the insured.
- D. The insured only.
Answer: D
NEW QUESTION # 41
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 return the claim settlement in exchange for the painting.
- B. Bill must buy the painting back.
- C. Bill may exercise an option to buy the painting back.
- D. Bill may keep the claim settlement and also keep the painting.
Answer: C
NEW QUESTION # 42
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. Both the insurer and Paul at different times.
- B. Paul as it is a consumer contract.
- C. No one as Tim is not a party to the insurance contract.
- D. The insurer at all times.
Answer: D
NEW QUESTION # 43
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. International treaties.
- B. Case law.
- C. Official law reports.
- D. Legislation.
Answer: B,D
NEW QUESTION # 44
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. avoid the claim automatically due to the breach of the policy condition.
- C. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
- D. settle the claim and recover its outlay from the insured.
Answer: B
NEW QUESTION # 45
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CII E05 exam is a rigorous assessment that requires candidates to demonstrate a thorough understanding of insurance law and regulation. To prepare for the exam, candidates must study the key concepts and principles of insurance law, familiarize themselves with the relevant legislation and regulatory frameworks, and keep up-to-date with recent developments in the field.
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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