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CII E05 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Formation of Insurance Contracts | 15% | - Offer, acceptance and consideration - Utmost good faith and disclosure - Insurable interest |
| Topic 2: Claims and Indemnity Principles | 15% | - Measure of indemnity - Subrogation and contribution - Notification and proof of loss |
| Topic 3: Interpretation and Vitiation of Insurance Contracts | 15% | - Factors vitiating the contract - Rules of construction - Warranties, conditions and exceptions |
| Topic 4: Law of Torts | 15% | - Other torts: trespass, nuisance, breach of statutory duty - Principles of negligence - Application to liability insurance |
| Topic 5: Law of Agency | 10% | - Authority, rights and duties - Application to insurance intermediaries - Creation and types of agency |
| Topic 6: Nature and Sources of English Law | 15% | - Legal personality and capacity - Sources of law: statute, common law, EU influence - Legal system and structure |
| Topic 7: Law of Contract | 15% | - Breach and remedies - Essentials of a valid contract - Terms, conditions and representations |
CII Examination element of M05 Insurance law Sample Questions:
Which divisional court of the High Court includes a Commercial Court?
- A. Queen's Bench Division.
- B. Chancery Division.
- C. Partnership Division.
- D. Family Division.
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. not unreasonably reject an insured's claim.
- C. provide reasonable guidance to an insured to help him make a claim.
- D. settle a claim promptly once settlement has been agreed.
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 express term.
- B. an exception clause.
- C. a basis of the contract clause.
- D. a continuing warranty.
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. has been individually negotiated and is to the detriment of either one of the parties.
- B. does not restrict liability for death or personal injury.
- C. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- D. provides insurance where the scope of cover is narrow compared to the premium charged.
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. £9,000,000
- B. £10,000,000
- C. £5,000,000
- D. £7,500,000



