CII M05 : Insurance law (IL) Exam

M05 real exams

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Sep 10, 2026

Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

Question #1

Under insurance law, what is the effect of a fraudulent claim on an insurance policy?

  • A. The policyholder may still receive a partial payout
  • B. The policyholder must repay any claim payments made previously
  • C. The insurer may cancel the policy and deny the claim
  • D. The insurer is required to pay the claim regardless of the fraud
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?

  • A. Immediately, irrespective of prognosis.
  • B. He does not need to disclose this.
  • C. At the date of the next premium payment.
  • D. Immediately, but only if the diagnosis is terminal.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #3

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 liability.
  • B. A condition precedent to the contract.
  • C. A suspensive condition.
  • D. A collateral condition.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

Which of the following statements is true regarding exclusions in an insurance policy?

  • A. Exclusions limit the scope of coverage, specifying situations that are not covered
  • B. Exclusions apply only if the loss is caused by fraud
  • C. Exclusions are added to increase the risk of the insurer
  • D. Exclusions are always inapplicable if the insured pays extra for coverage
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

A manufacturer was under contract to pay a supplier El .000 on receipt of the delivery of raw materials.
However, the supplier failed to deliver and the manufacturer had to purchase identical materials from another supplier for £1,200. What amount of damages is the manufacturer legally entitled to claim from the supplier who failed to deliver?

  • A. £200
  • B. £1,200
  • C. £2,200
  • D. £1,000
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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