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CII Insurance law (IL) : M05 Exam

M05 Exam Questions
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Oct 12, 2026
  • Q & A: 121 Questions and Answers
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CII M05 Exam Syllabus Topics:

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

                                  CII Insurance law (IL) Sample Questions:

                                  Question #1

                                  What is the intended purpose of a subrogation waiver clause in an insurance po

                                  • A. The doctrine of subrogation is excluded from the policy.
                                  • B. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
                                  • C. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
                                  • D. Cover is suspended whilst the insurer pursues an action for subrogation.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: B  🗳️

                                  Question #2

                                  Under UK insurance law, which document outlines the terms of the insurance agreement between the insurer and the insured?

                                  • A. The proposal form
                                  • B. The insurance policy
                                  • C. The statement of fact
                                  • D. The schedule of benefits
                                  Reveal Solution  Discussion  0

                                  Correct Answer: B  🗳️

                                  Explanation: Only visible for RealExamFree members. You can sign-up / login (it's free).

                                  Question #3

                                  In accordance with the principle of good faith, which facts must a potential policyholder disclose to the insurer when applying for insurance?

                                  • A. Any facts of law.
                                  • B. Only those facts considered likely to reduce the cost of cover
                                  • C. Any facts which are considered material to the risk.
                                  • D. Any facts which are in the public domain.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Question #4

                                  The proximate cause of a loss is best described as the

                                  • A. most remote cause of the loss.
                                  • B. first peril to cause the loss.
                                  • C. most dominant cause of the loss.
                                  • D. final peril to cause the loss.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Question #5

                                  Under the principle of indemnity, what is the objective of an insurance contract?

                                  • A. To ensure the insured receives full compensation for their loss regardless of the circumstances
                                  • B. To ensure the insured profits from the loss
                                  • C. To restore the insured to the same financial position they were in before the loss
                                  • D. To protect the insurer from fraudulent claims
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Explanation: Only visible for RealExamFree members. You can sign-up / login (it's free).

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