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Last Updated: Sep 30, 2026

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CII M05 Exam Syllabus Topics:

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

CII Insurance law (IL) Sample Questions:

Question #1

For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?

  • A. Bankruptcy of the agent.
  • B. Death of the agent.
  • C. Bankruptcy of the principal.
  • D. Disclosure of the name of the principal.
Reveal Solution  Discussion  0

Correct Answer: B,C  🗳️

Question #2

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 real statement.
  • C. a first loss policy.
  • D. an indemnity policy.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #3

For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?

  • A. It is not treated as a separate legal entity.
  • B. It is an organisation with a separate legal existence to its membership.
  • C. It is a legal person representing one official position.
  • D. It is answerable to its shareholders or members.
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

Question #4

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. appoints an agent to carry out the contract provisions.
  • B. proves that the parties to the contract intended to limit his rights.
  • C. is the agent who arranged the contract.
  • D. is one of a general class of persons identified in the contract as benefitting from the contract.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

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
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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