CII Insurance law (IL) - M05 Exam Questions [2026]

QUESTION NO: 1
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. Disclosure of the name of the principal. B. Bankruptcy of the agent. C. Bankruptcy of the principal. D. Death of the agent.

Correct Answer: C,D

QUESTION NO: 2
What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

A. It provides legal advice to insurers B. It regulates the pricing of insurance products C. It helps consumers resolve complaints with their insurers D. It issues licenses to insurance companies

Correct Answer: C

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QUESTION NO: 3
What principle requires that both the insurer and insured disclose all material facts to each other before and during the contract?

A. The principle ofcontribution B. The principle ofindemnity C. The principle ofsubrogation D. The principle ofutmost good faith (uberrimae fidei)

Correct Answer: D

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QUESTION NO: 4
Which of the following is an essential element in the formation of an insurance contract?

A. A signed declaration by the policyholder B. The payment of a premium C. A formal written agreement D. A valid claim history

Correct Answer: B

QUESTION NO: 5
In the context of insurance law, who is considered a third-party claimant?

A. An insurance broker acting on behalf of a client B. A family member of the policyholder C. A person who suffers a loss or injury caused by the policyholder's actions D. The policyholder who initiates a claim

Correct Answer: D

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QUESTION NO: 6
Which of the following terms in an insurance policy is typically enforceable in a court of law?

A. Conditions precedent B. Warranties C. Exclusions D. Representations

Correct Answer: B

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QUESTION NO: 7
John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?

A. He does not need to disclose this. B. At the date of the next premium payment. C. Immediately, but only if the diagnosis is terminal. D. Immediately, irrespective of prognosis.

Correct Answer: A