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CII Insurance law (IL) : M05

M05 actual test
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Sep 13, 2026
  • Q & A: 121 Questions and Answers
  • PDF Demo
  • PC Test Engine
  • Online Test Engine
  • Total Price: $59.99  

About CII Insurance law (IL) : M05 Exam

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CII M05 Exam Syllabus Topics:

SectionObjectives
Agency Law- Creation and authority of agents
  • 1. Actual and apparent authority
    • 2. Duties of agents and principals
      Liability and Tort- Employer and public liability
      • 1. Vicarious liability
        • 2. Occupiers’ liability
          - Negligence and duty of care
          • 1. Remedies and damages
            • 2. Breach and causation
              Legal System and Sources of Law- Structure of the legal system
              • 1. Civil vs criminal law distinctions
                • 2. Courts and hierarchy
                  - Sources of law
                  • 1. Common law and equity
                    • 2. Statute law and regulations
                      Insurance Claims and Legal Principles- Claims handling principles
                      • 1. Subrogation and contribution
                        • 2. Indemnity principle
                          Contract Law and Insurance Contracts- Formation of contracts
                          • 1. Offer and acceptance
                            • 2. Consideration and intention
                              - Insurance-specific principles
                              • 1. Utmost good faith (uberrimae fidei)
                                • 2. Insurable interest

                                  CII Insurance law (IL) Sample Questions:

                                  Question #1

                                  A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?

                                  • A. Cover for both parties would be invalidated as the cover is likely to be a composite policy.
                                  • B. Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
                                  • C. Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy
                                  • D. Cover for both parties would be invalidated as the cover is likely to be a joint policy.
                                  Answer: D
                                  Question #2

                                  Fran is self-employed and works from home. She uses her spare bedroom as an office and separately insures her computer, photocopier and other items of office equipment. She occasionally uses the equipment for personal use. Under the Consumer Insurance (Disclosure and Representations) Act 2012. in relation to insuring this equipment, she would be defined as a

                                  • A. consumer because she is an individual.
                                  • B. non-consumer because the items covered are not household items.
                                  • C. consumer because she is working from home rather than on business premises.
                                  • D. non-consumer because her insurance cover is mainly for business use.
                                  Answer: A
                                  Question #3

                                  Paul made a formal offer to John and gave hun (out weeks to accept it. Three weeks later, and before, John had responded. Paul needed to withdraw the offer. What is the position in contract law?

                                  • A. John can enforce the contract as the offer was formally made.
                                  • B. John cannot enforce the contract but is entitled to claim damages from Paul.
                                  • C. Paul has the right to withdraw the offer at any time before acceptance.
                                  • D. Paul does not have the right to withdraw the offer within the four-week period.
                                  Answer: C
                                  Question #4

                                  A household insurance policyholder leaves his home to go to work without setting the burglar alarm. Whilst he was out, his new tumble dryer overheats and causes fire damage to the kitchen. In what circumstances may the insurer legally reject a fire claim?

                                  • A. If the tumble dryer is covered by extended warranty insurance.
                                  • B. If there is a subrogation action against the manufacturer of the tumble dryer.
                                  • C. If the policyholder exaggerates the value of the claim.
                                  • D. If there is a breach of a warranty requiring the burglar alarm to be set.
                                  Answer: C
                                  Question #5

                                  What is the basis of settlement under a new for old insurance policy if a television is stolen?

                                  • A. The replacement cost, less wear and tear.
                                  • B. The original cost, less wear and tear.
                                  • C. The replacement cost in full.
                                  • D. The original cost in full.
                                  Answer: A

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