Insurance law (IL) Exam: M05 Exam


"Insurance law (IL) Exam", also known as M05 exam, is a CII Certification. With the complete collection of questions and answers, Pass4sureCert has assembled to take you through 121 Q&As to your M05 Exam preparation. In the M05 exam resources, you will cover every field and category in Insurance Law (M05) Certification helping to ready you for your successful CII Certification.

  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Total Questions: 121

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CII M05 Exam Syllabus Topics:

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

                      CII Insurance law (IL) Sample Questions:

                      For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?

                      • A. A deliberate attempt to obtain the proceeds of two policies.
                      • B. A merger between two major insurance companies.
                      • C. The inadvertent non-cancellation of a policy when a new policy is taken out.
                      • D. An overlap in cover between two different types of insurance policy.
                      Reveal Solution  Discussion  0

                      Correct Answer: A,D  🗳️

                      A claimant may possibly recover money transferred under an illegal contract when

                      • A. the legal portion of the contract can be severed from the illega portion.
                      • B. both parties to the contract are equal in wrongdoing.
                      • C. the contract is against public policy but not substantive law.
                      • D. the illegality makes the contract voidable rather than void.
                      Reveal Solution  Discussion  0

                      Correct Answer: B  🗳️

                      Which of the following terms in an insurance policy is typically enforceable in a court of law?

                      • A. Conditions precedent
                      • B. Representations
                      • C. Exclusions
                      • D. Warranties
                      Reveal Solution  Discussion  0

                      Correct Answer: D  🗳️

                      Explanation: Only visible for Pass4sureCert members. You can sign-up / login (it's free).

                      A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?

                      • A. Pay the claim in full.
                      • B. Make an ex-gratia payment.
                      • C. Avoid the policy ab initio.
                      • D. Reject the claim for breach of warranty.
                      Reveal Solution  Discussion  0

                      Correct Answer: A  🗳️

                      If a proposer has failed to fully answer a question on a proposal form, the insurer is deemed to have waived its rights to this information because it

                      • A. has statistics on similar risks.
                      • B. should be able to underwrite the risk based on the information already provided.
                      • C. did not request further information.
                      • D. does not have the right to ask the proposer for more information.
                      Reveal Solution  Discussion  0

                      Correct Answer: C  🗳️

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