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CII M05 Exam Syllabus Topics:
| Section | Objectives |
| Law of Agency and Insurance | - Agency relationships
- 1. Creation of agency
- 2. Duties and liabilities
- 3. Authority of agents
|
| Law of Contract | - Contract formation and operation
- 1. Consideration
- 2. Terms of contract
- 3. Offer and acceptance
- 4. Breach of contract
|
| Insurance Contract Terms and Vitiating Factors | - Policy terms and breaches
- 1. Representations
- 2. Conditions
- 3. Warranties
- Factors affecting validity
- 1. Misrepresentation
- 2. Non-disclosure
- 3. Fraud
|
| Nature and Sources of English Law and Legal Persons | - Nature and sources of English law
- 1. Statute law
- 2. European and international influences
- 3. Common law
- Legal personality
- 1. Natural persons
- 2. Juristic persons
|
| Insurance Claims | - Claims process and legal principles
- 1. Claims notification
- 2. Claims handling
- 3. Policyholder duties
|
| Indemnity and Loss Measurement | - Principle of indemnity
- 1. Valuation of loss
- 2. Methods of indemnification
|
| Formation of Insurance Contracts | - Core insurance principles
- 1. Disclosure and misrepresentation
- 2. Insurable interest
- 3. Utmost good faith
|
| Subrogation and Contribution | - Recovery rights and sharing of losses
- 1. Subrogation
- 2. Contribution
|
| Law of Torts | - Principles of tort law
- 1. Negligence
- 2. Trespass
- 3. Nuisance
|
CII Insurance law (IL) Sample Questions:
1. Which of the following is considered an exclusion in a standard property insurance policy?
A) Theft by a third party
B) Damage caused by accidental breakage
C) Loss due to war or civil unrest
D) Loss caused by a fire
2. What are the main objectives of the principle of insurable interest?
A) To reduce physical hazard and to discourage wagering.
B) To reduce physical hazard and to discourage profiteering.
C) To reduce moral hazard and to discourage wagering.
D) To reduce moral hazard and to discourage profiteering.
3. Under the principle of indemnity, what is the objective of an insurance contract?
A) To protect the insurer from fraudulent claims
B) To ensure the insured profits from the loss
C) To restore the insured to the same financial position they were in before the loss
D) To ensure the insured receives full compensation for their loss regardless of the circumstances
4. Julie has agreed to feed lan's cat whilst he is away on holiday in a remote location. When the cat becomes seriously ill. Julie is unable to contact Ian, so she takes the cat to the vet and also pays the vet's bill. In these circumstances. Julie is best described as:
A) an agent by estoppel
B) an agent by necessity
C) an implied agent
D) an express agent
5. The principle of subrogation prevents a policyholder from profiting from
A) retaining salvaged property.
B) assigning abandonment rights to the insurer.
C) submitting a full claim recovery under more than one insurance policy.
D) claiming under both his insurance policy and against any negligent third party.
Solutions:
Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |