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CII M05 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Terms and Interpretation of Insurance Contracts | 16% | - Conditions, warranties, exceptions
|
| Formation of Insurance Contracts | 18% | - Utmost good faith, disclosure, representation
|
| Legislation and Regulation | 14% | - Consumer protection, data protection, FCA/PRA rules
|
| English Legal System and Basic Concepts | 10% | - Nature and sources of law
|
| Claims and Loss Settlement | 14% | - Notification, proof of loss, measure of indemnity
|
| Law of Torts | 8% | - Principles of tort liability
|
| Law of Contract | 12% | - Formation of contract
|
| Law of Agency | 8% | - Authority, duties, rights and liabilities
|
CII Insurance law (IL) Sample Questions:
1. What does the principle of "indemnity" generally prevent in an insurance contract?
A) Setting premiums based on market conditions
B) Insuring property for more than its actual value
C) Limiting the insurer's liability
D) Allowing the insured to profit from the loss
2. 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) a counter offer
C) an offer
D) an acceptance of an offer
3. What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?
A) 35% for personal injury cases and 25% for employment tribunal cases.
B) 50% for both cases.
C) 35% for both cases.
D) 25% for personal injury cases and 35% for employment tribunal cases.
4. As a result of a breach of good faith under a commercial insurance policy, the insurer avoided the policy as a whole, but was NOT permitted to retain the premium because
A) the premium was paid by monthly installments.
B) the misrepresentation was innocent.
C) the misrepresentation was fraudulent.
D) no claim had been submitted or paid.
5. When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as
A) a new for old policy.
B) a first loss policy.
C) a real statement.
D) an indemnity policy.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: B |
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