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The Insurance law (IL) Exam (M05)

Passing CII Insurance Law (M05) exam ensures for the successful candidate a powerful array of professional and personal benefits. The first and the foremost benefit comes with a global recognition that validates your knowledge and skills, making possible your entry into any organization of your choice.

M05 pdf (PDF) Q & A

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M05 Test Engine (Test Engine)

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M05 Exam Dumps
  • Exam Code: M05
  • Vendor: CII
  • Certifications: Insurance Law (M05)
  • Exam Name: Insurance law (IL) Exam
  • Updated: Jun 22, 2026 Free Updates: 90 days Total Questions: 118 Try Free Demo

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CII M05 Exam Domains Q&A

Certified instructors verify every question for 100% accuracy, providing detailed, step-by-step explanations for each.

Question 1 CII M05
QUESTION DESCRIPTION:

Which of the following is true regarding the "principle of subrogation"?

  • A.

    It allows the insured to be compensated twice for the same loss

  • B.

    It allows the insurer to pursue third parties responsible for the loss

  • C.

    It means the insurer is entitled to the premium even if the claim is not paid

  • D.

    It prevents the insurer from recovering any costs from a third party

Correct Answer & Rationale:

Answer: B

Explanation:

Subrogation allows the insurer to "step into the shoes" of the insured after they pay a claim, allowing them to pursue recovery from any third parties who may be responsible for the loss.

Question 2 CII M05
QUESTION DESCRIPTION:

When the rule in Rylands v Fletcher operates, liability arises from the:

  • A.

    strict liability of the defendant

  • B.

    defendant's trespass to land

  • C.

    vicarious liability of the defendant

  • D.

    defendant's negligence.

Correct Answer & Rationale:

Answer: A

Explanation:

The rule in Rylands v Fletcher establishes strict liability , meaning the defendant can be held liable for certain kinds of damage even if they were not negligent or at fault. This applies in situations where a person brings something onto their land (like water or chemicals) that has the potential to escape and cause damage. If it does escape, the defendant is typically held strictly liable for any resulting harm, regardless of whether they were negligent or not.

Question 3 CII M05
QUESTION DESCRIPTION:

What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

  • A.

    It provides legal advice to insurers

  • B.

    It helps consumers resolve complaints with their insurers

  • C.

    It regulates the pricing of insurance products

  • D.

    It issues licenses to insurance companies

Correct Answer & Rationale:

Answer: B

Explanation:

The Financial Ombudsman Service (FOS) is an independent body that helps consumers resolve disputes with financial services, including insurance companies. It provides a neutral mechanism for dispute resolution.

Question 4 CII M05
QUESTION DESCRIPTION:

Which of the following regulatory bodies oversees the conduct of insurance firms in the UK?

  • A.

    Financial Conduct Authority (FCA)

  • B.

    Prudential Regulation Authority (PRA)

  • C.

    Bank of England

  • D.

    Insurance Ombudsman Service

Correct Answer & Rationale:

Answer: A

Explanation:

Financial Conduct Authority (FCA)

Question 5 CII M05
QUESTION DESCRIPTION:

Which of the following terms in an insurance policy is typically enforceable in a court of law?

  • A.

    Representations

  • B.

    Warranties

  • C.

    Conditions precedent

  • D.

    Exclusions

Correct Answer & Rationale:

Answer: B

Explanation:

Explanation :

Warranties are conditions in the insurance contract that are considered to be fundamental and must be strictly adhered to. A breach of warranty can result in the insurer being able to avoid liability. Representations are made by the insured but are not legally binding in the same way.

Question 6 CII M05
QUESTION DESCRIPTION:

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

  • A.

    Exclusions are added to increase the risk of the insurer

  • B.

    Exclusions are always inapplicable if the insured pays extra for coverage

  • C.

    Exclusions limit the scope of coverage, specifying situations that are not covered

  • D.

    Exclusions apply only if the loss is caused by fraud

Correct Answer & Rationale:

Answer: C

Explanation:

Explanation : Exclusions are provisions in an insurance policy that specify certain events or situations that are not covered by the policy, even if a loss occurs. For example, war or terrorism may be excluded from certain policies. These exclusions help the insurer manage risk.

Question 7 CII M05
QUESTION DESCRIPTION:

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

  • A.

    It defines the scope of coverage for the policyholder

  • B.

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

  • C.

    It outlines exclusions from coverage

  • D.

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

Correct Answer & Rationale:

Answer: B

Explanation:

A condition precedent refers to a requirement that must be met before an insurer is obligated to pay a claim. Failure to meet this condition can result in the insurer not being liable.

Question 8 CII M05
QUESTION DESCRIPTION:

Which body represents the solicitors' profession in England and Wales?

  • A.

    The Faculty of Advocates.

  • B.

    The Solicitors Regulation Authority.

  • C.

    The Law Society.

  • D.

    Bar Council.

Correct Answer & Rationale:

Answer: C

Explanation:

The Law Society represents the solicitors' profession in England and Wales. It is the professional body for solicitors, providing support, setting standards, and promoting the interests of its members.

The Solicitors Regulation Authority (SRA) is responsible for regulating solicitors, but it is not the representative body.

Question 9 CII M05
QUESTION DESCRIPTION:

Which of the following is an example of a condition precedent in an insurance contract?

  • A.

    A policyholder’s obligation to make premium payments

  • B.

    The insured’s duty to disclose any material changes in their circumstances

  • C.

    The insurer’s requirement to pay claims within a specific period after notification

  • D.

    A policyholder’s agreement to not engage in fraudulent behavior

Correct Answer & Rationale:

Answer: B

Explanation:

Explanation : Conditions precedent are actions or circumstances that must be met or fulfilled before the insurer is obligated to pay a claim. Failure to fulfill a condition precedent, such as disclosing material changes in circumstances, may result in a denial of a claim.

Question 10 CII M05
QUESTION DESCRIPTION:

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

  • A.

    An offer to insure

  • B.

    An acceptance of the offer

  • C.

    The payment of a premium.

  • D.

    The disclosure of a medical history

Correct Answer & Rationale:

Answer: D

Explanation:

The disclosure of a medical history

Explanation : While disclosure of material facts, such as medical history, is crucial under the principle of utmost good faith , it is not a requirement for the formation of an insurance contract. The core requirements are an offer, acceptance, and consideration (premium).

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