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CII M05 real answers - Insurance law (IL) Exam

M05
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Sep 13, 2025
  • Q & A: 121 Questions and Answers
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CII Insurance law (IL) Sample Questions:

1. For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?

A) When fraud or arson by the insured is suspected.
B) Where there is underinsurance.
C) Upon the request of any person(s) interested in the buildings.
D) Where the building was destroyed by an explosion.


2. 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) An insurance broker acting on behalf of a client
C) The policyholder who initiates a claim
D) A family member of the policyholder


3. What is the role of an insurance broker in a typical insurance transaction?

A) To act as a middleman between the insurer and the insured, negotiating the terms of the policy
B) To provide legal advice and act as a lawyer for the insured
C) To pay insurance premiums on behalf of the insured
D) To ensure the insurer complies with all regulatory requirements


4. When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of

A) trespass to goods, conversion and nuisance only,
B) trespass to goods and conversion only.
C) trespass to goods, conversion, nuisance and battery.
D) trespass to goods only.


5. Which of the following is a key principle of insurance that ensures that a policyholder is not overcompensated for a loss?

A) Utmost good faith
B) Indemnity
C) Insurable interest
D) Subrogation


Solutions:

Question # 1
Answer: A,C
Question # 2
Answer: C
Question # 3
Answer: A
Question # 4
Answer: D
Question # 5
Answer: B

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