Easy To Download CII M05 Exam Dumps Updated 121 Questions [Q32-Q55]

November 12, 2026 admin 0 Comments

Rate this post

Easy To Download CII M05 Exam Dumps Updated 121 Questions

New Updated M05 Exam Questions 2026

CII M05 Exam Syllabus Topics:

Section	Weight	Objectives
Formation of Insurance Contracts	18%	– Utmost good faith, disclosure, representation 1. Insurable interest, indemnity, subrogation
Law of Agency	8%	– Authority, duties, rights and liabilities 1. Agent-principal relationship in insurance
Claims and Loss Settlement	14%	– Notification, proof of loss, measure of indemnity 1. Subrogation, contribution, proximate cause
Terms and Interpretation of Insurance Contracts	16%	– Conditions, warranties, exceptions 1. Vitiating factors, construction of terms
English Legal System and Basic Concepts	10%	– Nature and sources of law 1. Common law, statute law, EU law 2. Legal persons and capacity
Law of Contract	12%	– Formation of contract 1. Offer, acceptance, consideration, intention 2. Terms, breach, remedies, privity
Legislation and Regulation	14%	– Consumer protection, data protection, FCA/PRA rules 1. Insurance regulatory framework
Law of Torts	8%	– Principles of tort liability 1. Negligence, nuisance, strict liability

NEW QUESTION 32
When the rule in Rylands v Fletcher operates, liability arises from the:

strict liability of the defendant

defendant’s trespass to land

vicarious liability of the defendant

defendant’s negligence.

The rule inRylands v Fletcherestablishesstrict liability, meaning the defendant can be held liable for certain kinds of damage even if they were not negligent or at fault. This applies in situations where a person brings something onto their land (like water or chemicals) that has the potential to escape and cause damage. If it does escape, the defendant is typically held strictly liable for any resulting harm, regardless of whether they were negligent or not.

NEW QUESTION 33
What is the basis of settlement under a new for old insurance policy if a television is stolen?

The original cost in full.

The original cost, less wear and tear.

The replacement cost in full.

The replacement cost, less wear and tear.

NEW QUESTION 34
What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

It provides legal advice to insurers

It helps consumers resolve complaints with their insurers

It regulates the pricing of insurance products

It issues licenses to insurance companies

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 35
Fred knew Susie wanted to sell her car. On behalf of Susie, Fred agreed the sale of the car to Tina for £5.000.
That evening, Susie ratified Fred’s agreement with Tina The next day. Tina decided NOT to proceed with the purchase What is Susie’s legal position in these circumstances?

She can sue both Fred and Tina jointly for breach of good faith.

She can sue Fred for breach of agency agreement.

She can sue Tina for breach of contract.

She has no legal right to sue.

NEW QUESTION 36
Which of the following is true about insurable interest?

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

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

Insurable interest is only required for life insurance policies

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

interestrefers to the requirement that the policyholder must stand to suffer a financial loss from the event insured. In most cases, this must be proven at the time of loss, not just when the policy is issued.

NEW QUESTION 37
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of

trespass to goods, conversion, nuisance and battery.

trespass to goods and conversion only.

trespass to goods, conversion and nuisance only,

trespass to goods only.

NEW QUESTION 38
Which of the following is a typical remedy for an insurer when the insured breaches a warranty?

The insurer must continue to provide coverage, but with an increased premium

The insurer may cancel the contract or refuse to pay a claim

The insurer can sue the insured for breach of contract

The insurer is obligated to reduce the payout amount based on the breach

A breach of a warranty is considered a serious violation in an insurance contract, and the insurer may have the right to cancel the contract or refuse to pay a claim based on the breach.

NEW QUESTION 39
For this question more than 1 option is correct. You must select ail the correct options to gain the mark.
In what circumstances does the Fires Prevention (Metropolis) Act 1774 require insurance companies to ensure that claims monies are used to rebuild or reinstate buildings destroyed or damaged by fire?

When fraud or arson by the insured is suspected.

Where the building was destroyed by an explosion.

Where there is underinsurance.

Upon the request of any person(s) interested in the buildings.

NEW QUESTION 40
What is the maximum contingency fee percentage under a damages-based agreement that can be charged by a solicitor for personal injury cases and employment tribunal cases respectively?

35% for personal injury cases and 25% for employment tribunal cases.

25% for personal injury cases and 35% for employment tribunal cases.

35% for both cases.

50% for both cases.

NEW QUESTION 41
How do an insurer’s subrogation rights differ, if at all, between a theft policy and a personal accident policy?

Subrogation rights only apply under a theft policy.

Subrogation rights do not apply under either policy.

Subrogation rights only apply under a personal accident policy.

Subrogation rights apply under both policies.

NEW QUESTION 42
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim’s principal?

No one as Tim is not a party to the insurance contract.

Both the insurer and Paul at different times.

The insurer at all times.

Paul as it is a consumer contract.

NEW QUESTION 43
What is the role of a condition precedent in an insurance policy?

It defines the scope of coverage for the policyholder

It is a requirement that must be met before the insurer is liable for a claim

It outlines exclusions from coverage

It ensures that the insurer will cover all risks associated with a policy

A condition precedent refers to a requirement that must be met before an insurer is obligated to pay a claim.
Failure to meet this condition can result in the insurer not being liable.

NEW QUESTION 44
At what stage is insurable interest required for a marine cargo insurance policy?

At the time of the loss only.

Throughout the duration of the contract.

At inception of the policy only.

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

NEW QUESTION 45
What is the legal effect of a warranty in an insurance contract?

A warranty is a condition precedent to liability.

A warranty allows the insurer to increase premiums.

A warranty makes the contract voidable by the insured.

A warranty must be fulfilled by the insurer.

A warranty is a condition precedent to liability.

NEW QUESTION 46
Which divisional court of the High Court includes a Commercial Court?

Queen’s Bench Division.

Partnership Division.

Chancery Division.

Family Division.

NEW QUESTION 47
What is the role of the Financial Ombudsman Service (FOS) in insurance disputes?

It issues licenses to insurance companies

It regulates the pricing of insurance products

It provides legal advice to insurers

It helps consumers resolve complaints with their insurers

NEW QUESTION 48
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

settle a claim promptly once settlement has been agreed.

handle a claims notification within 14 days.

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

not unreasonably reject an insured’s claim.

NEW QUESTION 49
In the context of an insurance claim, what does the principle of subrogation refer to?

The insurer’s right to reduce the claim payout

The insured’s obligation to provide all relevant documents to the insurer

The insurer’s right to pursue a third party responsible for the loss

The insured’s right to receive compensation up to the value of their loss

Subrogationis the principle that allows the insurer to step into the shoes of the insured and pursue any third party responsible for causing the loss. This helps the insurer recover the claim amount paid out to the insured.

NEW QUESTION 50
For this question more than 1 option is correct. You must select all the correct options to gain the mark.
A proposer for private motorcycle insurance carelessly states the motorcycle’s engine capacity as 500cc when in fact it is 1500cc. A policy is issued by the insurer on this basis. In the event of a valid claim causing damage to the motorcycle, what potential remedies are available to the insurer under the Consumer Insurance (Disclosure and Representations) Act 2012?

Reject the claim, but maintain the policy.

Reduce the claim amount in proportion to the premium it would have charged.

Apply any terms it would have applied if the misrepresentation had not taken place.

Avoid the contract, refuse all claims and keep the premium.

NEW QUESTION 51
What is the most common for of corporation?

Registered corporation.

Chartered corporation.

Corporation sole.

Statutory corporation.

NEW QUESTION 52
Why may an insurer insert a continuing warranty into an insurance policy?

To ensure that underinsurance is avoided at all times.

To enable an insurer to charge an additional premium if the warranty is continually breached.

To maintain the annual aggregate limit of liability throughout the policy period.

To encourage good risk management by the insured throughout the policy period.

NEW QUESTION 53
If the amount to be paid in the event of a total loss of insured property is agreed between the proposer and the insurer at inception of the policy, this is a modification of the principle of

good faith.

contribution.

indemnity.

subrogation.

NEW QUESTION 54
A breach of warranty under the general law of contract legally entitles an injured party to

claim damages.

avoid the contract from the date of the breach.

obtain specific performance.

avoid the contract ab initio.

NEW QUESTION 55
Under insurance law, what is the effect of a fraudulent claim on an insurance policy?

The policyholder may still receive a partial payout

The insurer is required to pay the claim regardless of the fraud