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CII Insurance law (IL) : M05

M05

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Sep 13, 2026

Q & A: 121 Questions and Answers

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About CII Insurance law (IL) certification

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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

Question #1
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?

A. It will usually override any implied term which conflicts with it.
B. It must be evidenced in documentary form.
C. It may be implied by conduct.
D. It may be oral or in writing.


Question #2
The test of the materiality of facts in an insurance contract is defined according to the opinion of a

A. reasonable person.
B. honest proposer.
C. prudent underwriter.
D. diligent broker.


Question #3
When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?

A. They will be classed as relevant information and will affect the premium.
B. They will only be considered if Tom had a further speeding conviction in the last 12 months.
C. They will not be considered as this is not an underwriting factor in motor insurance risk assessment.
D. They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.


Question #4
In respect of a life assurance policy, the duty to take reasonable care NOT to make a misrepresentation ends when the proposer

A. dies and his estate submits a claim to the insurer.
B. forms the contract with the insurer.
C. signs and submits the completed proposal form to the insurer.
D. assigns the contract to a third party.


Question #5
Which of the following is a typical remedy for an insurer when the insured breaches a warranty?

A. The insurer is obligated to reduce the payout amount based on the breach
B. The insurer can sue the insured for breach of contract
C. The insurer may cancel the contract or refuse to pay a claim
D. The insurer must continue to provide coverage, but with an increased premium


Solutions:

Question #1
Correct Answer: A,D
Question #2
Correct Answer: C
Question #3
Correct Answer: D
Question #4
Correct Answer: B
Question #5
Correct Answer: C

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