CII M05 Q&A - in .pdf

  • M05 pdf
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Aug 20, 2026
  • Q & A: 121 Questions and Answers
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  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
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  • Updated: Aug 20, 2026
  • Q & A: 121 Questions and Answers
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CII M05 Q&A - Testing Engine

  • M05 Testing Engine
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Aug 20, 2026
  • Q & A: 121 Questions and Answers
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CII M05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Law of Agency and Insurance- Agency relationships
  • 1. Authority of agents
  • 2. Duties and liabilities
  • 3. Creation of agency
Topic 2: Formation of Insurance Contracts- Core insurance principles
  • 1. Insurable interest
  • 2. Disclosure and misrepresentation
  • 3. Utmost good faith
Topic 3: Insurance Contract Terms and Vitiating Factors- Factors affecting validity
  • 1. Misrepresentation
  • 2. Non-disclosure
  • 3. Fraud
- Policy terms and breaches
  • 1. Conditions
  • 2. Representations
  • 3. Warranties
Topic 4: Insurance Claims- Claims process and legal principles
  • 1. Claims handling
  • 2. Policyholder duties
  • 3. Claims notification
Topic 5: Subrogation and Contribution- Recovery rights and sharing of losses
  • 1. Contribution
  • 2. Subrogation
Topic 6: Law of Torts- Principles of tort law
  • 1. Trespass
  • 2. Negligence
  • 3. Nuisance
Topic 7: Indemnity and Loss Measurement- Principle of indemnity
  • 1. Valuation of loss
  • 2. Methods of indemnification
Topic 8: Law of Contract- Contract formation and operation
  • 1. Offer and acceptance
  • 2. Breach of contract
  • 3. Terms of contract
  • 4. Consideration
Topic 9: Nature and Sources of English Law and Legal Persons- Legal personality
  • 1. Juristic persons
  • 2. Natural persons
- Nature and sources of English law
  • 1. European and international influences
  • 2. Common law
  • 3. Statute law

CII Insurance law (IL) Sample Questions:

1. In the context of insurance law, who is considered a third-party claimant?

A) A family member of the policyholder
B) An insurance broker acting on behalf of a client
C) The policyholder who initiates a claim
D) A person who suffers a loss or injury caused by the policyholder's actions


2. Which of the following terms in an insurance policy is typically enforceable in a court of law?

A) Warranties
B) Representations
C) Conditions precedent
D) Exclusions


3. 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) The insurer at all times.
D) Paul as it is a consumer contract.


4. John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging £6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

A) £6,000
B) £15,000
C) £5,000
D) £3,000


5. Which of the following is an example of a condition precedent in an insurance contract?

A) The insured's duty to disclose any material changes in their circumstances
B) A policyholder's obligation to make premium payments
C) A policyholder's agreement to not engage in fraudulent behavior
D) The insurer's requirement to pay claims within a specific period after notification


Solutions:

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

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