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CII M05 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Law of Agency and Insurance | - Agency relationships
|
| Topic 2: Formation of Insurance Contracts | - Core insurance principles
|
| Topic 3: Insurance Contract Terms and Vitiating Factors | - Factors affecting validity
|
| Topic 4: Insurance Claims | - Claims process and legal principles
|
| Topic 5: Subrogation and Contribution | - Recovery rights and sharing of losses
|
| Topic 6: Law of Torts | - Principles of tort law
|
| Topic 7: Indemnity and Loss Measurement | - Principle of indemnity
|
| Topic 8: Law of Contract | - Contract formation and operation
|
| Topic 9: Nature and Sources of English Law and Legal Persons | - Legal personality
|
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 |






