CII M05 : Insurance law (IL) Exam

M05 pass collection

Exam Code: M05

Exam Name: Insurance law (IL) Exam

Updated: Aug 14, 2026

Q & A: 121 Questions and Answers

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CII M05 Exam Syllabus Topics:

SectionObjectives
Insurance Claims and Legal Principles- Claims handling principles
  • 1. Indemnity principle
    • 2. Subrogation and contribution
      Agency Law- Creation and authority of agents
      • 1. Actual and apparent authority
        • 2. Duties of agents and principals
          Liability and Tort- Employer and public liability
          • 1. Vicarious liability
            • 2. Occupiers’ liability
              - Negligence and duty of care
              • 1. Breach and causation
                • 2. Remedies and damages
                  Contract Law and Insurance Contracts- Insurance-specific principles
                  • 1. Utmost good faith (uberrimae fidei)
                    • 2. Insurable interest
                      - Formation of contracts
                      • 1. Consideration and intention
                        • 2. Offer and acceptance
                          Legal System and Sources of Law- Structure of the legal system
                          • 1. Civil vs criminal law distinctions
                            • 2. Courts and hierarchy
                              - Sources of law
                              • 1. Common law and equity
                                • 2. Statute law and regulations

                                  CII Insurance law (IL) Sample Questions:

                                  1. 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) 25% for personal injury cases and 35% for employment tribunal cases.
                                  C) 50% for both cases.
                                  D) 35% for both cases.


                                  2. Which legislation regulates the conduct of insurance companies and their intermediaries in the UK?

                                  A) The Consumer Insurance (Disclosure and Representations) Act 2012
                                  B) The Companies Act 2006
                                  C) The Financial Services and Markets Act 2000
                                  D) The Insurance Act 2015


                                  3. Under the principle of indemnity, what is the objective of an insurance contract?

                                  A) To ensure the insured profits from the loss
                                  B) To restore the insured to the same financial position they were in before the loss
                                  C) To ensure the insured receives full compensation for their loss regardless of the circumstances
                                  D) To protect the insurer from fraudulent claims


                                  4. 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) defendant's negligence.
                                  D) vicarious liability of the defendant


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

                                  A) It issues licenses to insurance companies
                                  B) It regulates the pricing of insurance products
                                  C) It provides legal advice to insurers
                                  D) It helps consumers resolve complaints with their insurers


                                  Solutions:

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

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