Jan 14, 2024 Detailed New E05 Exam Questions for Concept Clearance
E05 Exam Preparation Material with New E05 Dumps Questions.
CII E05 certification exam is an essential tool for professionals looking to advance their knowledge and understanding of insurance law. E05 examination element is part of the larger M05 Insurance Law qualification, which is offered by the Chartered Insurance Institute (CII). The CII E05 exam is designed to test the candidate's knowledge of key principles and concepts related to insurance law and regulation in the UK.
NEW QUESTION # 20
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. policyholder due to the literal rule.
- D. insurer due to the contra proferentem rule.
Answer: D
NEW QUESTION # 21
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. reasonable person.
- B. prudent underwriter.
- C. honest proposer.
- D. diligent broker.
Answer: B
NEW QUESTION # 22
A breach of warranty under the general law of contract legally entitles an injured party to
- A. avoid the contract ab initio.
- B. avoid the contract from the date of the breach.
- C. claim damages.
- D. obtain specific performance.
Answer: C
NEW QUESTION # 23
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. Statutory authority.
- C. Honest opinion.
- D. Necessity.
- E. Privilege.
Answer: C,E
NEW QUESTION # 24
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 delay in obtaining the correct medical treatment.
- B. The delay in seeking medical treatment.
- C. The unhygienic washing of the dog bite.
- D. The original physical injury of the dog bite.
Answer: D
NEW QUESTION # 25
Why may an insurer insert a continuing warranty into an insurance policy?
- A. To ensure that underinsurance is avoided at all times.
- B. To enable an insurer to charge an additional premium if the warranty is continually breached.
- C. To maintain the annual aggregate limit of liability throughout the policy period.
- D. To encourage good risk management by the insured throughout the policy period.
Answer: D
NEW QUESTION # 26
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. Legislation.
- D. Official law reports.
Answer: B,C
NEW QUESTION # 27
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. From the date of a breach of warranty.
- B. Where there is a variation in the insured risk.
- C. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- D. On submission of a claim.
Answer: B
NEW QUESTION # 28
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. It is shared between the insurer and the insured.
- B. The insured only.
- C. The State
- D. The insurer only.
Answer: B
NEW QUESTION # 29
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. Liz's husband.
- B. a person holding a dominant position over Liz.
- C. a person holding a senior position at Liz's bank.
- D. Liz's independent financial adviser.
Answer: B
NEW QUESTION # 30
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 grief or sorrow for the loss of a person with whom he had a close relationship.
- B. as a result of stress or harassment at work.
- C. through fear for his own safety in an accident.
- D. through fear for the safety of another person involved in an accident which he witnessed.
Answer: C
NEW QUESTION # 31
A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?
- A. A suspensive condition.
- B. A condition precedent to the contract.
- C. A condition precedent to liability.
- D. A collateral condition.
Answer: C
NEW QUESTION # 32
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?
- A. It is answerable to its shareholders or members.
- B. It is an organisation with a separate legal existence to its membership.
- C. It is a legal person representing one official position.
- D. It is not treated as a separate legal entity.
Answer: A,B
NEW QUESTION # 33
A claimant may possibly recover money transferred under an illegal contract when
- A. the illegality makes the contract voidable rather than void.
- B. both parties to the contract are equal in wrongdoing.
- 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.
Answer: B
NEW QUESTION # 34
A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under
- A. a condition precedent to liability.
- B. tort.
- C. a condition subsequent to liability.
- D. statute.
Answer: D
NEW QUESTION # 35
For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?
- A. When fraud or arson by the insured is suspected.
- B. Upon the request of any person(s) interested in the buildings.
- C. Where there is underinsurance.
- D. Where the building was destroyed by an explosion.
Answer: A,B
NEW QUESTION # 36
How can an agency relationship be best described?
- A. A person has transferred his obligations under a contract to another 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, 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.
Answer: B
NEW QUESTION # 37
For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as
- A. an exception clause.
- B. a continuing warranty.
- C. an express term.
- D. a basis of the contract clause.
Answer: C,D
NEW QUESTION # 38
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