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

                                  CII Insurance law (IL) Sample Questions:

                                  Question #1

                                  Which of the following is true regarding the "principle of subrogation"?

                                  • A. It allows the insured to be compensated twice for the same loss
                                  • B. It prevents the insurer from recovering any costs from a third party
                                  • C. It means the insurer is entitled to the premium even if the claim is not paid
                                  • D. It allows the insurer to pursue third parties responsible for the loss
                                  Reveal Solution  Discussion  0

                                  Correct Answer: D  🗳️

                                  Explanation: Only visible for TrainingQuiz members. You can sign-up / login (it's free).

                                  Question #2

                                  What are the main reasons why the law requires insurable interest to exist?

                                  • A. Discourage underinsurance and ensure premium adequacy.
                                  • B. Reduce moral hazard and discourage gambling.
                                  • C. Reduce physical hazard and discourage gambling.
                                  • D. Discourage betterment and ensure premium adequacy.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: B  🗳️

                                  Question #3

                                  A riot results in a shop being damaged and the shopowner's insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under

                                  • A. a condition subsequent to liability.
                                  • B. a condition precedent to liability.
                                  • C. tort.
                                  • D. statute.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: D  🗳️

                                  Question #4

                                  For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?

                                  • A. It is answerable to its shareholders or members.
                                  • B. It is an organisation with a separate legal existence to its membership.
                                  • C. It is a legal person representing one official position.
                                  • D. It is not treated as a separate legal entity.
                                  Reveal Solution  Discussion  0

                                  Correct Answer: A,B  🗳️

                                  Question #5

                                  Which of the following statements is true regarding exclusions in an insurance policy?

                                  • A. Exclusions are always inapplicable if the insured pays extra for coverage
                                  • B. Exclusions limit the scope of coverage, specifying situations that are not covered
                                  • C. Exclusions apply only if the loss is caused by fraud
                                  • D. Exclusions are added to increase the risk of the insurer
                                  Reveal Solution  Discussion  0

                                  Correct Answer: B  🗳️

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