Free M05 Questions for CII Insurance law (IL) M05 Exam as PDF & Practice Test Engine

Exam Code/Number: M05
Exam Name/Title: Insurance law (IL) Exam
Certification Provider: CII
Corresponding Certification: Insurance Law (M05)

Exam Questions: 121
Updated On: Aug 21, 2026

Question #1

What is the role of a condition precedent in an insurance policy?

A. It ensures that the insurer will cover all risks associated with a policy

B. It defines the scope of coverage for the policyholder

C. It outlines exclusions from coverage

D. It is a requirement that must be met before the insurer is liable for a claim

Discussion 0

Correct Answer: D Vote an answer

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Question #2

Which divisional court of the High Court includes a Commercial Court?

A. Partnership Division.

B. Queen's Bench Division.

C. Chancery Division.

D. Family Division.

Discussion 0

Correct Answer: C Vote an answer

Question #3

Insurance agencies are usually created by way of

A. implied agreement.

B. express agreement.

C. unilateral agreement.

D. deed of agreement.

Discussion 0

Correct Answer: B Vote an answer

Question #4

What is the primary purpose of the Duty of Disclosure in an insurance contract?

A. To allow the policyholder to choose the terms of coverage

B. To ensure the insurer is able to assess the risk involved in underwriting the policy

C. To ensure that both parties understand the terms of the contract

D. To protect the insurer from financial instability

Discussion 0

Correct Answer: B Vote an answer

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Question #5

Under the provisions of the Contracts (Rights of Third Parties) Act 1999, the right to enforce a contractual term arises if a third party.

A. proves that the parties to the contract intended to limit his rights.

B. is one of a general class of persons identified in the contract as benefitting from the contract.

C. is the agent who arranged the contract.

D. appoints an agent to carry out the contract provisions.

Discussion 0

Correct Answer: B Vote an answer

Question #6

What are the main reasons why the law requires insurable interest to exist?

A. Reduce physical hazard and discourage gambling.

B. Discourage underinsurance and ensure premium adequacy.

C. Discourage betterment and ensure premium adequacy.

D. Reduce moral hazard and discourage gambling.

Discussion 0

Correct Answer: D Vote an answer

Question #7

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

A. A person who suffers a loss or injury caused by the policyholder's actions

B. A family member of the policyholder

C. The policyholder who initiates a claim

D. An insurance broker acting on behalf of a client

Discussion 0

Correct Answer: C Vote an answer

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Question #8

Which of the following is not a typical requirement for the formation of an insurance contract?

A. An acceptance of the offer

B. An offer to insure

C. The disclosure of a medical history

D. The payment of a premium.

Discussion 0

Correct Answer: C Vote an answer

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Question #9

A breach of warranty under the general law of contract legally entitles an injured party to

A. avoid the contract ab initio.

B. obtain specific performance.

C. avoid the contract from the date of the breach.

D. claim damages.

Discussion 0

Correct Answer: D Vote an answer

Free M05 Questions for CII Insurance law (IL) M05 Exam as PDF & Practice Test Engine

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