CII M05 Actual Free Exam Questions & Community Discussion

Exam Code/Number: M05
Exam Name/Title: Insurance law (IL) Exam
Certification Provider: CII
Corresponding Certification: Insurance Law (M05)

Exam Questions: 121
Updated On: May 30, 2026

Question #22

For this question more than 1 option is correct. You must select all the correct options to gain the mark.
The Insurance: Conduct of Business sourcebook (ICOBS) rules in respect of claims handling specify that an insurer must

A. settle a claim promptly once settlement has been agreed.

B. provide reasonable guidance to an insured to help him make a claim.

C. handle a claims notification within 14 days.

D. not unreasonably reject an insured's claim.

Discussion 0

Correct Answer: A,B,D Vote an answer

Question #23

At what stage is insurable interest required for a marine cargo insurance policy?

A. At inception of the policy only.

B. Throughout the duration of the contract.

C. At both inception of the policy and at the time of the loss.

D. At the time of the loss only.

Discussion 0

Correct Answer: D Vote an answer

Question #24

Which of the following is true about insurable interest?

A. Insurable interest must always be proven at the time the policy is issued

B. The policyholder must have an interest in the property at the time of policy purchase but not at thetime of loss

C. Insurable interest is only required for life insurance policies

D. The policyholder must have a financial stake in the property or event insured at the time of loss

Discussion 0

Correct Answer: D Vote an answer

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Question #25

Paul made a formal offer to John and gave hun (out weeks to accept it. Three weeks later, and before, John had responded. Paul needed to withdraw the offer. What is the position in contract law?

A. Paul has the right to withdraw the offer at any time before acceptance.

B. John can enforce the contract as the offer was formally made.

C. Paul does not have the right to withdraw the offer within the four-week period.

D. John cannot enforce the contract but is entitled to claim damages from Paul.

Discussion 0

Correct Answer: A Vote an answer

Question #26

What are the main objectives of the principle of insurable interest?

A. To reduce physical hazard and to discourage profiteering.

B. To reduce physical hazard and to discourage wagering.

C. To reduce moral hazard and to discourage wagering.

D. To reduce moral hazard and to discourage profiteering.

Discussion 0

Correct Answer: C Vote an answer

Question #27

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

A. It regulates the pricing of insurance products

B. It helps consumers resolve complaints with their insurers

C. It provides legal advice to insurers

D. It issues licenses to insurance companies

Discussion 0

Correct Answer: B Vote an answer

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Question #28

When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as

A. a first loss policy.

B. a new for old policy.

C. an indemnity policy.

D. a real statement.

Discussion 0

Correct Answer: A Vote an answer

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