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CII E05 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Liability and Tort Law | - Vicarious liability - Negligence principles - Occupiers’ liability |
| Key Legal Principles in Insurance | - Insurable interest - Utmost good faith (uberrimae fidei) - Disclosure and misrepresentation - Warranties and conditions |
| Principles of Insurance Law | - Fundamental legal principles affecting insurance contracts - Nature and purpose of insurance law |
| Insurance Contract Formation | - Offer, acceptance, consideration, and intention to create legal relations - Policy wording and interpretation |
| Claims and Remedies | - Fraud and avoidance of policies - Claims handling process - Subrogation and contribution |
CII Examination element of M05 Insurance law Sample Questions:
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. A merger between two major insurance companies.
- C. The inadvertent non-cancellation of a policy when a new policy is taken out.
- D. An overlap in cover between two different types of insurance policy.
At what stage is insurable interest required for a marine cargo insurance policy?
- A. At inception of the policy only.
- B. Throughout the duration of the contract.
- C. At both inception of the policy and at the time of the loss.
- D. At the time of the loss only.
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?
- A. Avoid the contract, refuse all claims and keep the premium.
- B. Reject the claim, but maintain the policy.
- C. Reduce the claim amount in proportion to the premium it would have charged.
- D. Apply any terms it would have applied if the misrepresentation had not taken place.
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The doctrine of subrogation is excluded from the policy.
- B. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
- C. Cover is suspended whilst the insurer pursues an action for subrogation.
- D. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
Insurance agencies are usually created by way of
- A. express agreement.
- B. unilateral agreement.
- C. implied agreement.
- D. deed of agreement.
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