CII M05 Exam : Insurance law (IL) Exam

  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Oct 04, 2026
  • Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

SectionObjectives
Formation of Insurance Contracts- Core insurance principles
  • 1. Disclosure and misrepresentation
  • 2. Insurable interest
  • 3. Utmost good faith
Insurance Claims- Claims process and legal principles
  • 1. Claims notification
  • 2. Policyholder duties
  • 3. Claims handling
Insurance Contract Terms and Vitiating Factors- Factors affecting validity
  • 1. Non-disclosure
  • 2. Misrepresentation
  • 3. Fraud
- Policy terms and breaches
  • 1. Warranties
  • 2. Representations
  • 3. Conditions
Nature and Sources of English Law and Legal Persons- Nature and sources of English law
  • 1. European and international influences
  • 2. Common law
  • 3. Statute law
- Legal personality
  • 1. Juristic persons
  • 2. Natural persons
Indemnity and Loss Measurement- Principle of indemnity
  • 1. Methods of indemnification
  • 2. Valuation of loss
Law of Torts- Principles of tort law
  • 1. Nuisance
  • 2. Negligence
  • 3. Trespass
Subrogation and Contribution- Recovery rights and sharing of losses
  • 1. Subrogation
  • 2. Contribution
Law of Contract- Contract formation and operation
  • 1. Offer and acceptance
  • 2. Consideration
  • 3. Terms of contract
  • 4. Breach of contract
Law of Agency and Insurance- Agency relationships
  • 1. Authority of agents
  • 2. Duties and liabilities
  • 3. Creation of agency

CII Insurance law (IL) Sample Questions:

Question #1

Which of the following is not a typical requirement for the formation of an insurance contract?

  • A. The payment of a premium.
  • B. An acceptance of the offer
  • C. The disclosure of a medical history
  • D. An offer to insure
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

Which of the following is an example of a condition precedent in an insurance contract?

  • A. A policyholder's agreement to not engage in fraudulent behavior
  • B. A policyholder's obligation to make premium payments
  • C. The insured's duty to disclose any material changes in their circumstances
  • D. The insurer's requirement to pay claims within a specific period after notification
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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

Question #3

Bill owned a painting which was insured under a policy containing a first refusal clause. The painting was stolen and Bill's claim was settled, but several months later the painting was recovered by the police. As a consequence, what is Bill's position under his insurance policy?

  • A. Bill may exercise an option to buy the painting back.
  • B. Bill must buy the painting back.
  • C. Bill must return the claim settlement in exchange for the painting.
  • D. Bill may keep the claim settlement and also keep the painting.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #4

When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?

  • A. From the date of a breach of warranty.
  • B. Where there is a variation in the insured risk.
  • C. On submission of a claim.
  • D. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

The proximate cause of a loss is best described as the

  • A. first peril to cause the loss.
  • B. final peril to cause the loss.
  • C. most remote cause of the loss.
  • D. most dominant cause of the loss.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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