CII M05 : Insurance law (IL) Exam

M05 real exams

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Oct 03, 2026

Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

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

                                  CII Insurance law (IL) Sample Questions:

                                  Question #1

                                  A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a

                                  • A. moral hazard.
                                  • B. fundamental risk.
                                  • C. physical hazard.
                                  • D. pure risk.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Question #2

                                  Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?

                                  • A. 9 years.
                                  • B. 3 years.
                                  • C. 6 years.
                                  • D. 15 years.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: B  🗳️

                                  Question #3

                                  John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging £6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

                                  • A. £15,000
                                  • B. £3,000
                                  • C. £5,000
                                  • D. £6,000
                                  Reveal Solution  Discussion  0

                                  Correct Answer: C  🗳️

                                  Question #4

                                  Which of the following is a key principle of insurance law that requires the insured to disclose all material facts?

                                  • A. Subrogation
                                  • B. Indemnity
                                  • C. Contribution
                                  • D. Utmost good faith
                                  Reveal Solution  Discussion  0

                                  Correct Answer: D  🗳️

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                                  Question #5

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

                                  Correct Answer: B  🗳️

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