CII M05 Q&A - in .pdf

  • M05 pdf
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Aug 26, 2026
  • Q & A: 121 Questions and Answers
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CII M05 Q&A - Testing Engine

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  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
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  • Q & A: 121 Questions and Answers
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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

Question 1

When the rule in Rylands v Fletcher operates, liability arises from the:

A. vicarious liability of the defendant
B. strict liability of the defendant
C. defendant's trespass to land
D. defendant's negligence.


Question 2

A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to

A. settle the claim and cancel the insurance policy from inception.
B. avoid the claim automatically due to the breach of the policy condition.
C. only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
D. settle the claim and recover its outlay from the insured.


Question 3

Which of the following is true regarding the "principle of subrogation"?

A. It prevents the insurer from recovering any costs from a third party
B. It means the insurer is entitled to the premium even if the claim is not paid
C. It allows the insurer to pursue third parties responsible for the loss
D. It allows the insured to be compensated twice for the same loss


Question 4

Which of the following is a typical remedy for an insurer when the insured breaches a warranty?

A. The insurer may cancel the contract or refuse to pay a claim
B. The insurer is obligated to reduce the payout amount based on the breach
C. The insurer must continue to provide coverage, but with an increased premium
D. The insurer can sue the insured for breach of contract


Question 5

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 is required to pay the claim regardless of the fraud
D. The insurer may cancel the policy and deny the claim


Solutions:

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

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