CII M05 : Insurance law (IL) Exam

M05 real exams

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: May 31, 2026

Q & A: 121 Questions and Answers

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CII Insurance law (IL) Sample Questions:

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


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.


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.


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


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


Solutions:

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

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