Learn with CII : E05 training material for 100% pass

Updated: Jun 01, 2026

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CII Examination element of M05 Insurance law Sample Questions:

1. In the tort of negligence, a primary victim of nervous shock is a class of person who suffers psychiatric injury

A) through fear for the safety of another person involved in an accident which he witnessed.
B) as a result of stress or harassment at work.
C) as a result of grief or sorrow for the loss of a person with whom he had a close relationship.
D) through fear for his own safety in an accident.


2. 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) statute.
B) a condition subsequent to liability.
C) tort.
D) a condition precedent to liability.


3. 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 senior position at Liz's bank.
C) a person holding a dominant position over Liz.
D) Liz's independent financial adviser.


4. Which divisional court of the High Court includes a Commercial Court?

A) Queen's Bench Division.
B) Family Division.
C) Partnership Division.
D) Chancery Division.


5. How can an agency relationship be best described?

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


Solutions:

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

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