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CII M05 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Law of Agency | 8% | - Authority, duties, rights and liabilities
|
| Law of Contract | 12% | - Formation of contract
|
| Formation of Insurance Contracts | 18% | - Utmost good faith, disclosure, representation
|
| English Legal System and Basic Concepts | 10% | - Nature and sources of law
|
| Law of Torts | 8% | - Principles of tort liability
|
| Terms and Interpretation of Insurance Contracts | 16% | - Conditions, warranties, exceptions
|
| Legislation and Regulation | 14% | - Consumer protection, data protection, FCA/PRA rules
|
| Claims and Loss Settlement | 14% | - Notification, proof of loss, measure of indemnity
|
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 |






