M05 Exam Tutorials | M05 Valid Exam Cram

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| Section | Weight | Objectives |
|---|
| Claims and Loss Settlement | 14% | - Notification, proof of loss, measure of indemnity
- 1. Subrogation, contribution, proximate cause
|
| Legislation and Regulation | 14% | - Consumer protection, data protection, FCA/PRA rules
- 1. Insurance regulatory framework
|
| English Legal System and Basic Concepts | 10% | - Nature and sources of law
- 1. Common law, statute law, EU law
- 2. Legal persons and capacity
|
| Terms and Interpretation of Insurance Contracts | 16% | - Conditions, warranties, exceptions
- 1. Vitiating factors, construction of terms
|
| Law of Agency | 8% | - Authority, duties, rights and liabilities
- 1. Agent-principal relationship in insurance
|
| Formation of Insurance Contracts | 18% | - Utmost good faith, disclosure, representation
- 1. Insurable interest, indemnity, subrogation
|
| Law of Contract | 12% | - Formation of contract
- 1. Terms, breach, remedies, privity
- 2. Offer, acceptance, consideration, intention
|
| Law of Torts | 8% | - Principles of tort liability
- 1. Negligence, nuisance, strict liability
|
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CII Insurance law (IL) Exam Sample Questions (Q10-Q15):
NEW QUESTION # 10
For this question more than 1 option is correct. You must select all the correct options to gain the mark. How may double insurance arise?
- A. A merger between two major insurance companies.
- B. A deliberate attempt to obtain the proceeds of two policies.
- C. An overlap in cover between two different types of insurance policy.
- D. The inadvertent non-cancellation of a policy when a new policy is taken out.
Answer: B,C
NEW QUESTION # 11
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 may still receive a partial payout
- C. The insurer is required to pay the claim regardless of the fraud
- D. The policyholder must repay any claim payments made previously
Answer: A
NEW QUESTION # 12
Within what time period, from the date when the damage first began, does the owner of an office block have a right to sue the builder for negligent construction work?
- A. 6 years.
- B. 3 years.
- C. 9 years.
- D. 15 years.
Answer: B
NEW QUESTION # 13
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 issues licenses to insurance companies
- D. It provides legal advice to insurers
Answer: B
Explanation:
The Financial Ombudsman Service (FOS) is an independent body that helps consumers resolve disputes with financial services, including insurance companies. It provides a neutral mechanism for dispute resolution.
NEW QUESTION # 14
Which of the following is not a typical requirement for the formation of an insurance contract?
- A. The payment of a premium.
- B. The disclosure of a medical history
- C. An acceptance of the offer
- D. An offer to insure
Answer: B
Explanation:
The disclosure of a medical history
Explanation: While disclosure of material facts, such as medical history, is crucial under the principle of utmost good faith, it isnotarequirementfor the formation of an insurance contract. The core requirements are an offer, acceptance, and consideration (premium).
NEW QUESTION # 15
......
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