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CII Insurance Law (M05) M05

M05

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Oct 01, 2026

Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

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

                      CII Insurance law (IL) Sample Questions:

                      Question #1
                      A proposer for household insurance completes and submits an online application. When the insurer's website responds with a quotation based on the application, the quotation is most likely to be legally regarded as:

                      A. an invitation to treat
                      B. a counter offer
                      C. an acceptance of an offer
                      D. an offer


                      Question #2
                      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 may be implied by conduct.
                      C. It must be evidenced in documentary form.
                      D. It may be oral or in writing.


                      Question #3
                      How can an agency relationship be best described?

                      A. A person has transferred his obligations under a contract to another party.
                      B. A person has ratified another party's action.
                      C. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
                      D. A person has the authority to act on behalf of another party.


                      Question #4
                      According to statute, a term under a consumer personal accident insurance policy may potentially be considered unfair if the insurer

                      A. imposes a premium loading.
                      B. provides coverage that is more restrictive than that of other insurers.
                      C. requires notification of a claim within a very short time period.
                      D. applies a specific exclusion within the policy wording.


                      Question #5
                      A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?

                      A. Power of Attorney.
                      B. Coinsurance.
                      C. Trust.
                      D. Lien.


                      Solutions:

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

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