Purchase CII : E05 Exam Materials and then pass exam easily

Updated: Jun 03, 2026

No. of Questions: 52 Questions & Answers with Testing Engine

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CII Examination element of M05 Insurance law Sample Questions:

1. 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) No one as Tim is not a party to the insurance contract.
B) Both the insurer and Paul at different times.
C) Paul as it is a consumer contract.
D) The insurer at all times.


2. 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) avoid the claim automatically due to the breach of the policy condition.
B) settle the claim and recover its outlay from the insured.
C) only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
D) settle the claim and cancel the insurance policy from inception.


3. According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer

A) requires notification of a claim within a very short time period.
B) provides coverage that is more restrictive than that of other insurers.
C) applies a specific exclusion within the policy wording.
D) imposes a premium loading.


4. How can an agency relationship be best described?

A) A person has ratified another party's action.
B) A person has transferred his obligations under a contract to another party.
C) 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.
D) A person has the authority to act on behalf of another party.


5. A claimant may possibly recover money transferred under an illegal contract when

A) both parties to the contract are equal in wrongdoing.
B) the legal portion of the contract can be severed from the illega portion.
C) the contract is against public policy but not substantive law.
D) the illegality makes the contract voidable rather than void.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: A
Question # 4
Answer: D
Question # 5
Answer: A

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