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CII E05 certification exam is ideal for individuals who wish to progress in their careers within the insurance industry. It is a highly respected qualification that is recognised by leading insurance companies in the UK. E05 exam is also suitable for individuals working in other financial industries who wish to broaden their knowledge of insurance law and regulation.
CII E05 certification exam is an essential component for professionals looking to advance their careers in the insurance industry. It is a mandatory requirement for individuals seeking to obtain the Advanced Diploma in Insurance qualification from the Chartered Insurance Institute (CII). E05 exam primarily focuses on the legal and regulatory frameworks that govern the insurance industry in the UK.
NEW QUESTION # 24
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 premium was paid by monthly installments.
- B. no claim had been submitted or paid.
- C. the misrepresentation was innocent.
- D. the misrepresentation was fraudulent.
Answer: C
NEW QUESTION # 25
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods only.
- B. trespass to goods and conversion only.
- C. trespass to goods, conversion and nuisance only,
- D. trespass to goods, conversion, nuisance and battery.
Answer: A
NEW QUESTION # 26
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. Death of the agent.
- C. Bankruptcy of the principal.
- D. Bankruptcy of the agent.
Answer: B,C
NEW QUESTION # 27
What is the most common for of corporation?
- A. Registered corporation.
- B. Chartered corporation.
- C. Corporation sole.
- D. Statutory corporation.
Answer: A
NEW QUESTION # 28
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 # 29
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.
Answer: B
NEW QUESTION # 30
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must
- A. handle a claims notification within 14 days.
- B. provide reasonable guidance to an insured to help him make a claim.
- C. not unreasonably reject an insured's claim.
- D. settle a claim promptly once settlement has been agreed.
Answer: B,C,D
NEW QUESTION # 31
A breach of warranty under the general law of contract legally entitles an injured party to
- A. claim damages.
- B. avoid the contract ab initio.
- C. avoid the contract from the date of the breach.
- D. obtain specific performance.
Answer: A
NEW QUESTION # 32
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. 6 years.
- B. 15 years.
- C. 9 years.
- D. 3 years.
Answer: D
NEW QUESTION # 33
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 independent financial adviser.
- B. Liz's husband.
- C. a person holding a senior position at Liz's bank.
- D. a person holding a dominant position over Liz.
Answer: D
NEW QUESTION # 34
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- B. Cover is suspended whilst the insurer pursues an action for subrogation.
- C. The doctrine of subrogation is excluded from the policy.
- D. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
Answer: A
NEW QUESTION # 35
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.
Answer: D
NEW QUESTION # 36
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
- A. Lien.
- B. Coinsurance.
- C. Trust.
- D. Power of Attorney.
Answer: C
NEW QUESTION # 37
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. Statutory authority.
- B. Honest opinion.
- C. Prescription.
- D. Privilege.
- E. Necessity.
Answer: B,D
NEW QUESTION # 38
What are the main objectives of the principle of insurable interest?
- A. To reduce moral hazard and to discourage wagering.
- B. To reduce physical hazard and to discourage profiteering.
- C. To reduce physical hazard and to discourage wagering.
- D. To reduce moral hazard and to discourage profiteering.
Answer: A
NEW QUESTION # 39
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 insured only.
- D. The State
Answer: C
NEW QUESTION # 40
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 merger between two major insurance companies.
- B. An overlap in cover between two different types of insurance policy.
- C. A deliberate attempt to obtain the proceeds of two policies.
- D. The inadvertent non-cancellation of a policy when a new policy is taken out.
Answer: B,C
NEW QUESTION # 41
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 # 42
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