Exam Code: M05
Exam Name: Insurance law (IL) Exam
Certification Provider: CII
Corresponding Certification: Insurance Law (M05)
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CII M05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Indemnity and Loss Measurement- Principle of indemnity
  • 1. Valuation of loss
  • 2. Methods of indemnification
Topic 2: Nature and Sources of English Law and Legal Persons- Legal personality
  • 1. Juristic persons
  • 2. Natural persons
- Nature and sources of English law
  • 1. Statute law
  • 2. Common law
  • 3. European and international influences
Topic 3: Subrogation and Contribution- Recovery rights and sharing of losses
  • 1. Contribution
  • 2. Subrogation
Topic 4: Law of Agency and Insurance- Agency relationships
  • 1. Authority of agents
  • 2. Creation of agency
  • 3. Duties and liabilities
Topic 5: Law of Contract- Contract formation and operation
  • 1. Breach of contract
  • 2. Terms of contract
  • 3. Consideration
  • 4. Offer and acceptance
Topic 6: Formation of Insurance Contracts- Core insurance principles
  • 1. Insurable interest
  • 2. Disclosure and misrepresentation
  • 3. Utmost good faith
Topic 7: Law of Torts- Principles of tort law
  • 1. Nuisance
  • 2. Negligence
  • 3. Trespass
Topic 8: Insurance Contract Terms and Vitiating Factors- Policy terms and breaches
  • 1. Conditions
  • 2. Warranties
  • 3. Representations
- Factors affecting validity
  • 1. Fraud
  • 2. Non-disclosure
  • 3. Misrepresentation
Topic 9: Insurance Claims- Claims process and legal principles
  • 1. Claims notification
  • 2. Claims handling
  • 3. Policyholder duties

CII Insurance law (IL) Sample Questions:

What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?

  • A. An excess.
  • B. Brokerage.
  • C. Loss of interest.
  • D. Wear and tear.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Which of the following statements is true regarding exclusions in an insurance policy?

  • A. Exclusions are always inapplicable if the insured pays extra for coverage
  • B. Exclusions limit the scope of coverage, specifying situations that are not covered
  • C. Exclusions apply only if the loss is caused by fraud
  • D. Exclusions are added to increase the risk of the insurer
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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What is the principle of utmost good faith in insurance?

  • A. Both parties in the contract must act honestly and disclose all material facts.
  • B. Insurers must provide coverage for all types of risks.
  • C. A policyholder's claims must always be paid out without dispute.
  • D. The insurance policy must be renewed annually.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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A manufacturer was under contract to pay a supplier El .000 on receipt of the delivery of raw materials.
However, the supplier failed to deliver and the manufacturer had to purchase identical materials from another supplier for £1,200. What amount of damages is the manufacturer legally entitled to claim from the supplier who failed to deliver?

  • A. £1,000
  • B. £2,200
  • C. £1,200
  • D. £200
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

What does the Consumer Insurance (Disclosure and Representations) Act 2012 require from consumers applying for insurance?

  • A. Consumers are required to pay for claims made during the policy term.
  • B. Consumers must disclose all material facts honestly and accurately.
  • C. Consumers must choose an insurer based on premium prices alone.
  • D. Consumers must answer questions about their past claims history.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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