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CII M05 Questions & Answers - in .pdf

M05 pdf
  • Total Q&A: 121
  • Update: Aug 22, 2026
  • Price: $59.99
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  • Vendor: CII
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
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CII M05 Q&A - Testing Engine

M05 Study Guide
  • Total Q&A: 121
  • Update: Aug 22, 2026
  • Price: $59.99
Testing Engine
  • Vendor: CII
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
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CII M05 Exam Syllabus Topics:

SectionObjectives
Contract Law and Insurance Contracts- Formation of contracts
  • 1. Offer and acceptance
    • 2. Consideration and intention
      - Insurance-specific principles
      • 1. Utmost good faith (uberrimae fidei)
        • 2. Insurable interest
          Insurance Claims and Legal Principles- Claims handling principles
          • 1. Subrogation and contribution
            • 2. Indemnity principle
              Legal System and Sources of Law- Structure of the legal system
              • 1. Courts and hierarchy
                • 2. Civil vs criminal law distinctions
                  - Sources of law
                  • 1. Common law and equity
                    • 2. Statute law and regulations
                      Agency Law- Creation and authority of agents
                      • 1. Duties of agents and principals
                        • 2. Actual and apparent authority
                          Liability and Tort- Negligence and duty of care
                          • 1. Breach and causation
                            • 2. Remedies and damages
                              - Employer and public liability
                              • 1. Occupiers’ liability
                                • 2. Vicarious liability

                                  CII Insurance law (IL) Sample Questions:

                                  1. In an insurance policy arranged through an insurance broker the parties to the contract are the:

                                  A) insurance broker only
                                  B) insured only
                                  C) insured and the insurer only
                                  D) Insurance broker and the insured only


                                  2. Which of the following regulatory bodies oversees the conduct of insurance firms in the UK?

                                  A) Prudential Regulation Authority (PRA)
                                  B) Financial Conduct Authority (FCA)
                                  C) Bank of England
                                  D) Insurance Ombudsman Service


                                  3. John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging £6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

                                  A) £5,000
                                  B) £15,000
                                  C) £6,000
                                  D) £3,000


                                  4. How can an agency relationship be best described?

                                  A) A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
                                  B) A person has the authority to act on behalf of another party.
                                  C) A person has ratified another party's action.
                                  D) A person has transferred his obligations under a contract to another party.


                                  5. When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as

                                  A) a first loss policy.
                                  B) a real statement.
                                  C) an indemnity policy.
                                  D) a new for old policy.


                                  Solutions:

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

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