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CII M05 pass test : Insurance law (IL) Exam

M05 actual test
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Aug 29, 2026
  • Q & A: 121 Questions and Answers
  • PDF Demo
  • PC Test Engine
  • Online Test Engine
  • Total Price: $59.99  

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CII M05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Formation of Insurance Contracts- Core insurance principles
  • 1. Utmost good faith
  • 2. Insurable interest
  • 3. Disclosure and misrepresentation
Topic 2: Nature and Sources of English Law and Legal Persons- Legal personality
  • 1. Juristic persons
  • 2. Natural persons
- Nature and sources of English law
  • 1. Statute law
  • 2. European and international influences
  • 3. Common law
Topic 3: Insurance Contract Terms and Vitiating Factors- Factors affecting validity
  • 1. Fraud
  • 2. Misrepresentation
  • 3. Non-disclosure
- Policy terms and breaches
  • 1. Warranties
  • 2. Conditions
  • 3. Representations
Topic 4: Law of Contract- Contract formation and operation
  • 1. Terms of contract
  • 2. Offer and acceptance
  • 3. Breach of contract
  • 4. Consideration
Topic 5: Indemnity and Loss Measurement- Principle of indemnity
  • 1. Valuation of loss
  • 2. Methods of indemnification
Topic 6: Law of Agency and Insurance- Agency relationships
  • 1. Creation of agency
  • 2. Duties and liabilities
  • 3. Authority of agents
Topic 7: Subrogation and Contribution- Recovery rights and sharing of losses
  • 1. Contribution
  • 2. Subrogation
Topic 8: Insurance Claims- Claims process and legal principles
  • 1. Claims notification
  • 2. Claims handling
  • 3. Policyholder duties
Topic 9: Law of Torts- Principles of tort law
  • 1. Negligence
  • 2. Nuisance
  • 3. Trespass

CII Insurance law (IL) Sample Questions:

Question 1

A nurse working shifts is regularly disturbed by her neighbour givig brass instrument lessons in Ihe evenings.
She is tired and losing concentration at work but is NOT at risk of losing her job. What remedy can be provided by equity as an alternative source of law to common law?

A. An injunction.
B. Punitive damages.
C. Specific performance
D. General damages.


Question 2

Fraudulent claims invalidate the policy and the insurer is entitled to cancel the policy and deny any claims associated with it. Fraud is a serious violation under the principle of utmost good faith.
What is the purpose of the Doctrine of Insurable Interest in insurance contracts?

A. To protect the policyholder's right to make a claim regardless of their involvement
B. To prevent the insured from profiting from a loss
C. To ensure that the policyholder has a financial stake in the insured item or person
D. To protect the insurer from excessive claims


Question 3

A claimant may possibly recover money transferred under an illegal contract when

A. the legal portion of the contract can be severed from the illega portion.
B. the illegality makes the contract voidable rather than void.
C. both parties to the contract are equal in wrongdoing.
D. the contract is against public policy but not substantive law.


Question 4

Which of the following terms in an insurance policy is typically enforceable in a court of law?

A. Exclusions
B. Representations
C. Conditions precedent
D. Warranties


Question 5

Fran is self-employed and works from home. She uses her spare bedroom as an office and separately insures her computer, photocopier and other items of office equipment. She occasionally uses the equipment for personal use. Under the Consumer Insurance (Disclosure and Representations) Act 2012. in relation to insuring this equipment, she would be defined as a

A. consumer because she is an individual.
B. non-consumer because the items covered are not household items.
C. consumer because she is working from home rather than on business premises.
D. non-consumer because her insurance cover is mainly for business use.


Solutions:

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

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