CII M05 Dumps : Insurance law (IL) Exam

M05 real exams

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Aug 28, 2026

Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

SectionWeightObjectives
Law of Agency8%- Authority, duties, rights and liabilities
  • 1. Agent-principal relationship in insurance
    Law of Contract12%- Formation of contract
    • 1. Offer, acceptance, consideration, intention
      • 2. Terms, breach, remedies, privity
        Formation of Insurance Contracts18%- Utmost good faith, disclosure, representation
        • 1. Insurable interest, indemnity, subrogation
          English Legal System and Basic Concepts10%- Nature and sources of law
          • 1. Common law, statute law, EU law
            • 2. Legal persons and capacity
              Law of Torts8%- Principles of tort liability
              • 1. Negligence, nuisance, strict liability
                Terms and Interpretation of Insurance Contracts16%- Conditions, warranties, exceptions
                • 1. Vitiating factors, construction of terms
                  Legislation and Regulation14%- Consumer protection, data protection, FCA/PRA rules
                  • 1. Insurance regulatory framework
                    Claims and Loss Settlement14%- Notification, proof of loss, measure of indemnity
                    • 1. Subrogation, contribution, proximate cause

                      CII Insurance law (IL) Sample Questions:

                      Question 1

                      The principle of indemnity is the

                      A. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
                      B. obligation of the insurer to provide a maximum sum insured or limit of liability.
                      C. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
                      D. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.


                      Question 2

                      Which of the following is considered an exclusion in a standard property insurance policy?

                      A. Damage caused by accidental breakage
                      B. Loss due to war or civil unrest
                      C. Theft by a third party
                      D. Loss caused by a fire


                      Question 3

                      Which of the following is an example of a condition precedent in an insurance contract?

                      A. The insurer must provide coverage for accidental damage
                      B. The insurer is required to pay claims for theft
                      C. The insured must maintain the insured item in good condition
                      D. The insured must pay the premium


                      Question 4

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


                      Question 5

                      Under insurance law, what is the effect of a fraudulent claim on an insurance policy?

                      A. The insurer is required to pay the claim regardless of the fraud
                      B. The policyholder may still receive a partial payout
                      C. The policyholder must repay any claim payments made previously
                      D. The insurer may cancel the policy and deny the claim


                      Solutions:

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

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