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CII M05 Valid Braindumps - Insurance law (IL) Exam

M05
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Oct 04, 2026
  • Q & A: 121 Questions and Answers
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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

Question #1

In a chain of events, the proximate cause of a loss is always the

  • A. only event contributing towards the loss.
  • B. dominant event leading to the loss.
  • C. last event before the loss occurs.
  • D. only event which is not excluded by the terms of the policy.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #2

For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?

  • A. Avoid the contract, refuse all claims and keep the premium.
  • B. Reduce the claim amount in proportion to the premium it would have charged.
  • C. Reject the claim, but maintain the policy.
  • D. Apply any terms it would have applied if the misrepresentation had not taken place.
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

Question #3

For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?

  • A. An overlap in cover between two different types of insurance policy.
  • B. A deliberate attempt to obtain the proceeds of two policies.
  • C. The inadvertent non-cancellation of a policy when a new policy is taken out.
  • D. A merger between two major insurance companies.
Reveal Solution  Discussion  0

Correct Answer: A,B  🗳️

Question #4

What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

  • A. It helps consumers resolve complaints with their insurers
  • B. It issues licenses to insurance companies
  • C. It provides legal advice to insurers
  • D. It regulates the pricing of insurance products
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

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

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

Correct Answer: B  🗳️

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