CII M05 : Insurance law (IL) Exam

  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Sep 21, 2026
  • Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Claims and Loss Settlement14%- Notification, proof of loss, measure of indemnity
  • 1. Subrogation, contribution, proximate cause
    Topic 2: Law of Agency8%- Authority, duties, rights and liabilities
    • 1. Agent-principal relationship in insurance
      Topic 3: Terms and Interpretation of Insurance Contracts16%- Conditions, warranties, exceptions
      • 1. Vitiating factors, construction of terms
        Topic 4: Law of Torts8%- Principles of tort liability
        • 1. Negligence, nuisance, strict liability
          Topic 5: Law of Contract12%- Formation of contract
          • 1. Terms, breach, remedies, privity
            • 2. Offer, acceptance, consideration, intention
              Topic 6: Legislation and Regulation14%- Consumer protection, data protection, FCA/PRA rules
              • 1. Insurance regulatory framework
                Topic 7: English Legal System and Basic Concepts10%- Nature and sources of law
                • 1. Common law, statute law, EU law
                  • 2. Legal persons and capacity
                    Topic 8: Formation of Insurance Contracts18%- Utmost good faith, disclosure, representation
                    • 1. Insurable interest, indemnity, subrogation

                      CII Insurance law (IL) Sample Questions:

                      Question #1

                      In an insurance policy arranged through an insurance broker the parties to the contract are the:

                      • A. insurance broker only
                      • B. insured and the insurer only
                      • C. insured only
                      • D. Insurance broker and the insured only
                      Reveal Solution  Discussion  0

                      Correct Answer: B  🗳️

                      Question #2

                      In the context of an insurance claim, what does the principle of subrogation refer to?

                      • A. The insured's obligation to provide all relevant documents to the insurer
                      • B. The insurer's right to pursue a third party responsible for the loss
                      • C. The insurer's right to reduce the claim payout
                      • D. The insured's right to receive compensation up to the value of their loss
                      Reveal Solution  Discussion  0

                      Correct Answer: B  🗳️

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                      Question #3

                      At what stage is insurable interest required for a marine cargo insurance policy?

                      • A. At inception of the policy only.
                      • B. Throughout the duration of the contract.
                      • C. At the time of the loss only.
                      • D. At both inception of the policy and at the time of the loss.
                      Reveal Solution  Discussion  0

                      Correct Answer: C  🗳️

                      Question #4

                      If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of

                      • A. indemnity.
                      • B. contribution.
                      • C. subrogation.
                      • D. good faith.
                      Reveal Solution  Discussion  0

                      Correct Answer: A  🗳️

                      Question #5

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

                      Correct Answer: C  🗳️

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