CII Insurance law (IL) : M05 valid dump

M05
  • Exam Code: M05
  • Exam Name: Insurance law (IL) Exam
  • Updated: Jun 22, 2026
  • Q & A: 121 Questions and Answers

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CII Insurance law (IL) Sample Questions:

1. Which of the following is a typical remedy for an insurer when the insured breaches a warranty?

A) The insurer must continue to provide coverage, but with an increased premium
B) The insurer can sue the insured for breach of contract
C) The insurer is obligated to reduce the payout amount based on the breach
D) The insurer may cancel the contract or refuse to pay a claim


2. For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?

A) Death of the agent.
B) Bankruptcy of the agent.
C) Bankruptcy of the principal.
D) Disclosure of the name of the principal.


3. Which of the following is a key principle of insurance law that requires the insured to disclose all material facts?

A) Indemnity
B) Utmost good faith
C) Subrogation
D) Contribution


4. Which of the following is considered an exclusion in a standard property insurance policy?

A) Damage caused by accidental breakage
B) Loss due to war or civil unrest
C) Loss caused by a fire
D) Theft by a third party


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

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


Solutions:

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

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