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Free Insurance law (IL) Practice Questions

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Total Questions : 118

Start with our free M05 practice questions, carefully crafted to mirror the domains, phrasing, and difficulty of the real Insurance Law (M05) exam. Each M05 exam question comes with a detailed rationale that explains not just which answer is correct but why the others fall short. That's how concepts stick. Use the free set to benchmark yourself: identify your CII weak domains, see where you're losing marks, and build a focused study plan in minutes.

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Question # 11

Which of the following is a feature of an insurance contract under the principle of “utmost good faith”?

Options:

A.  

The insurer must be transparent about the terms of the policy.

B.  

The insured must disclose all material facts relevant to the risk.

C.  

Both parties must agree on the premium amount in advance.

D.  

The insurer must pay all claims, regardless of the terms of the policy.

Discussion 0
Question # 12

Which of the following terms in an insurance policy is typically enforceable in a court of law?

Options:

A.  

Representations

B.  

Warranties

C.  

Conditions precedent

D.  

Exclusions

Discussion 0
Question # 13

Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?

Options:

A.  

The delay in seeking medical treatment.

B.  

The unhygienic washing of the dog bite.

C.  

The original physical injury of the dog bite.

D.  

The delay in obtaining the correct medical treatment.

Discussion 0
Question # 14

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

Options:

A.  

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

B.  

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

C.  

The insurer’s right to reduce the claim payout

D.  

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

Discussion 0
Question # 15

John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging £6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?

Options:

A.  

£3,000

B.  

£5,000

C.  

£6,000

D.  

£15,000

Discussion 0
Question # 16

Which of the following is an essential element in the formation of an insurance contract?

Options:

A.  

A formal written agreement

B.  

A signed declaration by the policyholder

C.  

The payment of a premium

D.  

A valid claim history

Discussion 0
Question # 17

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?

Options:

A.  

Immediately, irrespective of prognosis.

B.  

He does not need to disclose this.

C.  

Immediately, but only if the diagnosis is terminal.

D.  

At the date of the next premium payment.

Discussion 0
Question # 18

What are the main objectives of the principle of insurable interest?

Options:

A.  

To reduce moral hazard and to discourage profiteering.

B.  

To reduce physical hazard and to discourage profiteering.

C.  

To reduce physical hazard and to discourage wagering.

D.  

To reduce moral hazard and to discourage wagering.

Discussion 0
Question # 19

In terms of private motor insurance, a renewal offer can be accepted

Options:

A.  

by the proposer acting in reliance of the offer.

B.  

only by written communication.

C.  

only by the proposer personally.

D.  

by any third party.

Discussion 0
Question # 20

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?

Options:

A.  

When fraud or arson by the insured is suspected.

B.  

Where the building was destroyed by an explosion.

C.  

Where there is underinsurance.

D.  

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

Discussion 0

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