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CII M05

M05

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Aug 11, 2026

Q & A: 121 Questions and Answers

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About CII M05 Exam

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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

1. Which of the following is considered an exclusion in a standard property insurance policy?

A) Loss due to war or civil unrest
B) Loss caused by a fire
C) Damage caused by accidental breakage
D) Theft by a third party


2. In the context of an insurance claim, what does the principle of subrogation refer to?

A) The insured's obligation to provide all relevant documents to the insurer
B) The insured's right to receive compensation up to the value of their loss
C) The insurer's right to reduce the claim payout
D) The insurer's right to pursue a third party responsible for the loss


3. Which of the following best defines an insurance contract?

A) A contract for the protection of physical property only.
B) A contract that only applies to personal property insurance.
C) A contract where the insurer assumes no liability.
D) A contract in which one party agrees to indemnify another against specified risks in exchange for premiums.


4. A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?

A) A condition precedent to the contract.
B) A suspensive condition.
C) A condition precedent to liability.
D) A collateral condition.


5. What is the effect of a waiver on an insurance contract?

A) It terminates the policy
B) It allows the insurer to increase the premium
C) It reduces the policyholder's obligation to make full disclosure
D) It allows one party to ignore certain policy terms


Solutions:

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

M05 Related Exams
E05 - Examination element of M05 Insurance law
Related Certifications
Insurance Law (M05)
Certificate in Insurance
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