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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

What is the legal effect of a warranty in an insurance contract?

  • A. A warranty makes the contract voidable by the insured.
  • B. A warranty allows the insurer to increase premiums.
  • C. A warranty is a condition precedent to liability.
  • D. A warranty must be fulfilled by the insurer.
Answer: C

Explanation: Only visible for ActualTestsIT members. You can sign-up / login (it's free).

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. an acceptance of an offer
  • C. an offer
  • D. a counter offer
Answer: C

In the context of insurance law, who is considered a third-party claimant?

  • A. The policyholder who initiates a claim
  • B. A person who suffers a loss or injury caused by the policyholder's actions
  • C. An insurance broker acting on behalf of a client
  • D. A family member of the policyholder
Answer: A

Explanation: Only visible for ActualTestsIT members. You can sign-up / login (it's free).

When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?

  • A. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
  • B. Where there is a variation in the insured risk.
  • C. On submission of a claim.
  • D. From the date of a breach of warranty.
Answer: B

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

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