You will have to study this M05 exam questions. Some questions in the real exam are tricky. It's better to take your time and think. But you will pass for sure. I passed highly.
Exam Code: M05
Exam Name: Insurance law (IL) Exam
Updated: Oct 18, 2026
Q & A: 121 Questions and Answers
M05 Free Demo download
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| Section | Weight | Objectives |
|---|---|---|
| Legislation and Regulation | 14% | - Consumer protection, data protection, FCA/PRA rules
|
| Formation of Insurance Contracts | 18% | - Utmost good faith, disclosure, representation
|
| Terms and Interpretation of Insurance Contracts | 16% | - Conditions, warranties, exceptions
|
| Claims and Loss Settlement | 14% | - Notification, proof of loss, measure of indemnity
|
| Law of Contract | 12% | - Formation of contract
|
| Law of Agency | 8% | - Authority, duties, rights and liabilities
|
| English Legal System and Basic Concepts | 10% | - Nature and sources of law
|
| Law of Torts | 8% | - Principles of tort liability
|
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging £6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
Correct Answer: D 🗳️
As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
Correct Answer: B 🗳️
What does the Consumer Insurance (Disclosure and Representations) Act 2012 require from consumers applying for insurance?
Correct Answer: C 🗳️
Explanation: Only visible for ITexamReview members. You can sign-up / login (it's free).
What is the legal effect of a warranty in an insurance contract?
Correct Answer: A 🗳️
Explanation: Only visible for ITexamReview members. You can sign-up / login (it's free).
Which of the following is a key principle of insurance that ensures that a policyholder is not overcompensated for a loss?
Correct Answer: C 🗳️
Explanation: Only visible for ITexamReview members. You can sign-up / login (it's free).
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