E05 Exam Preparation Material | Examination element of M05 Insurance law

Prepare for the E05 with reliable study materials, practice questions, and key exam insights.

Prepare for the E05 ination element of M05 Insurance law exam with CertQueen's independently developed study resources. Review important concepts, practice scenario-based questions, and use clear explanations to identify areas that require further study.

Question#1

Which TWO statements about subrogation and contribution are correct?
(Choose two)

A. Subrogation allows an insurer to pursue recovery from a responsible third party.

B. Contribution deals with sharing a claim payment between insurers.

C. Subrogation and contribution are identical principles.

D. Contribution allows the insured to recover more than the insured loss.

Explanation:
Subrogation concerns an insurer recovering from a third party responsible for the loss.
Contribution concerns insurers sharing responsibility where multiple policies cover the same risk.
Why other options are incorrect:
✑ C. They are different legal principles.
✑ D. Contribution prevents over-recovery rather than allowing profit.
E05 Insurance Law Practice Questions
Mock Exam 2 (Revision v2)

Question#2

A commercial customer agrees to purchase insurance cover from an insurer. The customer promises to pay the premium, and the insurer promises to provide cover and pay valid claims.
Which contract principle BEST explains why this agreement is legally enforceable?

A. Consideration

B. Criminal liability

C. Judicial precedent

D. Statutory authority

Explanation:
Consideration is something of value exchanged between parties. In an insurance contract, the insured's promise to pay the premium provides consideration for the insurer's promise to provide insurance protection.
Why other options are incorrect:
✑ B. Criminal liability - relates to offences, not contract formation.
✑ C. Judicial precedent - explains how courts use previous decisions.
✑ D. Statutory authority - concerns powers created by legislation.

Question#3

A commercial policy contains both an exclusion clause and a condition requiring security arrangements.
Which TWO statements are correct?
(Choose two)

A. An exclusion clause limits the circumstances in which the insurer will provide cover.

B. A condition may impose obligations that the insured must comply with.

C. Exclusions and conditions always have identical legal effects.

D. Conditions cannot affect claims decisions.

Explanation:
Exclusions define situations where cover does not apply. Conditions impose obligations that may affect the insured's rights if breached.
Why other options are incorrect:
✑ C. Different types of terms may have different legal effects.
✑ D. Conditions can affect claims outcomes.

Question#4

A commercial insured deliberately fails to disclose a major change in the nature of its business before renewing insurance.
Which TWO statements are correct?
(Choose two)

A. The undisclosed change may be a material circumstance.

B. The insurer may have remedies depending on the nature of the breach.

C. Commercial insureds have no duty to provide risk information.

D. The insurer must always continue the policy on the original terms.

Explanation:
Commercial insureds must fairly present material circumstances. Failure to do so may provide insurers with remedies depending on whether the breach was deliberate, reckless, or careless.
Why other options are incorrect:
✑ C. Commercial insureds do have duties regarding risk information.
✑ D. The insurer may have legal remedies.

Question#5

Which TWO statements about salvage and abandonment are correct?
(Choose two)

A. Salvage concerns recovery of value from damaged or remaining property.

B. Abandonment may involve the insured giving up rights to damaged property in certain circumstances.

C. Salvage means the insurer must always replace damaged property with new property.

D. Abandonment automatically allows the insured to receive unlimited compensation.

Explanation:
Salvage allows recovery of remaining value from damaged property. Abandonment may apply in specific insurance situations where ownership rights and claim settlement interact.
Why other options are incorrect:
✑ C. Salvage does not require replacement with new property.
✑ D. Abandonment does not create unlimited compensation.

Exam Code: E05
Q & A: 50 Q&As Updated: Oct 08,2026

Access Complete E05 Preparation Material

What This E05 Study Resource Helps You Do

Review Key Concepts

Review the technologies, products, processes, and practical skills covered by the current E05 exam objectives.

Practice Scenario-Based Questions

Work through independently developed questions designed to strengthen your understanding of technical scenarios and decision-making.

Identify Knowledge Gaps

Use your results and the provided explanations to find weaker areas and focus your study more effectively.

How to Use This E05 Preparation Material

Review the Exam Scope

Start by reviewing the topics covered by the E05 exam. Compare them with the official exam objectives to understand the required technologies, operational tasks, and practical skills, then identify the areas that deserve the most attention.

Practice Independently

Complete a focused set of practice questions for each topic. On your first attempt, avoid referring to notes, answers, or other study resources so that you can evaluate your current understanding more accurately.

Study the Explanations

Review the answers and explanations after completing each practice session. Understand why the correct option is appropriate for the given scenario and why the other options may be incorrect or less suitable.

Close Knowledge Gaps

Keep track of incorrect answers, unfamiliar concepts, and weaker knowledge areas. Review these topics using official documentation and practical experience, then answer the related questions again to reinforce your understanding and monitor your progress.

Independent E05 Preparation Resource

CertQueen independently develops its certification study materials for educational purposes. The practice questions are not copied from, recalled from, or presented as live or official exam questions.

CertQueen is not affiliated with, endorsed by, sponsored by, or authorized by any certification provider. Certification names, exam codes, product names, and related trademarks are the property of their respective owners and are referenced only for identification and educational purposes.

Exam Code: E05
Q & A: 50 Q&As
Updated: Oct 08,2026