CII M05 : Insurance law (IL) Exam

M05 real exams

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Aug 24, 2026

Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

1. A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?

A) Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
B) Cover for both parties would be invalidated as the cover is likely to be a composite policy.
C) Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
D) Cover for both parties would be invalidated as the cover is likely to be a joint policy.


2. Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?

A) £9,000,000
B) £5,000,000
C) £10,000,000
D) £7,500,000


3. 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) £2,200
C) £1,200
D) £1,000


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 regulates the pricing of insurance products
D) It provides legal advice to insurers


5. A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under

A) a condition subsequent to liability.
B) statute.
C) tort.
D) a condition precedent to liability.


Solutions:

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

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