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M05 pdf
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Sep 01, 2026
  • Q & A: 121 Questions and Answers
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CII M05 Exam Syllabus Topics:

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

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.
A proposer for private motorcycle insurance carelessly states the motorcycle's engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?

A. Avoid the contract, refuse all claims and keep the premium.
B. Reject the claim, but maintain the policy.
C. Apply any terms it would have applied if the misrepresentation had not taken place.
D. Reduce the claim amount in proportion to the premium it would have charged.


Question 2

What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

A. It helps consumers resolve complaints with their insurers
B. It provides legal advice to insurers
C. It regulates the pricing of insurance products
D. It issues licenses to insurance companies


Question 3

Which of the following is true regarding the insurable interest in life insurance?

A. Insurable interest is required only at the time the policy is issued
B. The policyholder must have a financial interest in the property of the person insured
C. The policyholder must have a financial interest in the life of the person insured
D. Insurable interest is not required for life insurance policies


Question 4

Which of the following is a feature of an insurance contract under the principle of "utmost good faith"?

A. Both parties must agree on the premium amount in advance.
B. The insurer must pay all claims, regardless of the terms of the policy.
C. The insured must disclose all material facts relevant to the risk.
D. The insurer must be transparent about the terms of the policy.


Question 5

Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?

A. The original physical injury of the dog bite.
B. The unhygienic washing of the dog bite.
C. The delay in seeking medical treatment.
D. The delay in obtaining the correct medical treatment.


Solutions:

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

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