CII M05 : Insurance law (IL) Exam

M05 real exams

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Oct 18, 2026

Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

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

                      CII Insurance law (IL) Sample Questions:

                      Question #1

                      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?

                      • A. £6,000
                      • B. £3,000
                      • C. £15,000
                      • D. £5,000
                      Reveal Solution  Discussion  0

                      Correct Answer: D  🗳️

                      Question #2

                      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

                      • A. the premium was paid by monthly installments.
                      • B. the misrepresentation was innocent.
                      • C. no claim had been submitted or paid.
                      • D. the misrepresentation was fraudulent.
                      Reveal Solution  Discussion  0

                      Correct Answer: B  🗳️

                      Question #3

                      What does the Consumer Insurance (Disclosure and Representations) Act 2012 require from consumers applying for insurance?

                      • A. Consumers are required to pay for claims made during the policy term.
                      • B. Consumers must answer questions about their past claims history.
                      • C. Consumers must disclose all material facts honestly and accurately.
                      • D. Consumers must choose an insurer based on premium prices alone.
                      Reveal Solution  Discussion  0

                      Correct Answer: C  🗳️

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

                      Question #4

                      What is the legal effect of a warranty in an insurance contract?

                      • A. A warranty is a condition precedent to liability.
                      • B. A warranty makes the contract voidable by the insured.
                      • C. A warranty allows the insurer to increase premiums.
                      • D. A warranty must be fulfilled by the insurer.
                      Reveal Solution  Discussion  0

                      Correct Answer: A  🗳️

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                      Question #5

                      Which of the following is a key principle of insurance that ensures that a policyholder is not overcompensated for a loss?

                      • A. Insurable interest
                      • B. Subrogation
                      • C. Indemnity
                      • D. Utmost good faith
                      Reveal Solution  Discussion  0

                      Correct Answer: C  🗳️

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