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CII M05 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Claims and Legal Principles- Claims handling principles
  • 1. Subrogation and contribution
    • 2. Indemnity principle
      Topic 2: Liability and Tort- Employer and public liability
      • 1. Occupiers’ liability
        • 2. Vicarious liability
          - Negligence and duty of care
          • 1. Remedies and damages
            • 2. Breach and causation
              Topic 3: 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
                      Topic 4: Agency Law- Creation and authority of agents
                      • 1. Actual and apparent authority
                        • 2. Duties of agents and principals
                          Topic 5: Contract Law and Insurance Contracts- Insurance-specific principles
                          • 1. Insurable interest
                            • 2. Utmost good faith (uberrimae fidei)
                              - Formation of contracts
                              • 1. Offer and acceptance
                                • 2. Consideration and intention

                                  CII Insurance law (IL) Sample Questions:

                                  1. Which of the following is a feature of an insurance contract under the principle of "utmost good faith"?

                                  A) The insurer must pay all claims, regardless of the terms of the policy.
                                  B) The insured must disclose all material facts relevant to the risk.
                                  C) The insurer must be transparent about the terms of the policy.
                                  D) Both parties must agree on the premium amount in advance.


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

                                  A) The insurer's requirement to pay claims within a specific period after notification
                                  B) A policyholder's agreement to not engage in fraudulent behavior
                                  C) A policyholder's obligation to make premium payments
                                  D) The insured's duty to disclose any material changes in their circumstances


                                  3. A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?

                                  A) Lien.
                                  B) Power of Attorney.
                                  C) Coinsurance.
                                  D) Trust.


                                  4. What is the effect of a waiver on an insurance contract?

                                  A) It reduces the policyholder's obligation to make full disclosure
                                  B) It allows one party to ignore certain policy terms
                                  C) It allows the insurer to increase the premium
                                  D) It terminates the policy


                                  5. Under insurance law, what is the effect of a fraudulent claim on an insurance policy?

                                  A) The insurer may cancel the policy and deny the claim
                                  B) The policyholder must repay any claim payments made previously
                                  C) The policyholder may still receive a partial payout
                                  D) The insurer is required to pay the claim regardless of the fraud


                                  Solutions:

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

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