CII M05 : Insurance law (IL) Exam

  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Aug 16, 2026
  • Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Claims and Legal Principles- Claims handling principles
  • 1. Indemnity principle
    • 2. Subrogation and contribution
      Topic 2: Contract Law and Insurance Contracts- Insurance-specific principles
      • 1. Insurable interest
        • 2. Utmost good faith (uberrimae fidei)
          - Formation of contracts
          • 1. Consideration and intention
            • 2. Offer and acceptance
              Topic 3: Agency Law- Creation and authority of agents
              • 1. Actual and apparent authority
                • 2. Duties of agents and principals
                  Topic 4: Liability and Tort- Negligence and duty of care
                  • 1. Remedies and damages
                    • 2. Breach and causation
                      - Employer and public liability
                      • 1. Vicarious liability
                        • 2. Occupiers’ liability
                          Topic 5: Legal System and Sources of Law- Structure of the legal system
                          • 1. Civil vs criminal law distinctions
                            • 2. Courts and hierarchy
                              - Sources of law
                              • 1. Common law and equity
                                • 2. Statute law and regulations

                                  CII Insurance law (IL) Sample Questions:

                                  1. Insurance agencies are usually created by way of

                                  A) deed of agreement.
                                  B) express agreement.
                                  C) unilateral agreement.
                                  D) implied agreement.


                                  2. Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?

                                  A) The insurer at all times.
                                  B) Both the insurer and Paul at different times.
                                  C) No one as Tim is not a party to the insurance contract.
                                  D) Paul as it is a consumer contract.


                                  3. A married couple have equal shares in a property and are insured under a buildings insurance policy. What is the likely position in law of a breach of good faith by one party, which was unknown to the other party?

                                  A) Cover for both parties would be invalidated as the cover is likely to be a joint policy.
                                  B) Cover would be maintained in full for the innocent party as the cover is likely to be a composite policy.
                                  C) Cover for both parties would be invalidated as the cover is likely to be a composite policy.
                                  D) Cover would be maintained in full for the innocent party as the cover is likely to be a joint policy


                                  4. Which of the following is true regarding the "principle of subrogation"?

                                  A) It means the insurer is entitled to the premium even if the claim is not paid
                                  B) It prevents the insurer from recovering any costs from a third party
                                  C) It allows the insurer to pursue third parties responsible for the loss
                                  D) It allows the insured to be compensated twice for the same loss


                                  5. What is the role of an insurance broker in a typical insurance transaction?

                                  A) To provide legal advice and act as a lawyer for the insured
                                  B) To pay insurance premiums on behalf of the insured
                                  C) To act as a middleman between the insurer and the insured, negotiating the terms of the policy
                                  D) To ensure the insurer complies with all regulatory requirements


                                  Solutions:

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

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