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Real CII M05 practice exam questions for easy pass!

Last Updated: Jun 20, 2026

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CII Insurance law (IL) Sample Questions:

1. Ambiguous terms in a household insurance contract are generally construed against the

A) policyholder due to the noscitur a sociis rule.
B) policyholder due to the literal rule.
C) insurer due to the contra proferentem rule.
D) insurer due to the ejusdem generis rule.


2. 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 may cancel the contract or refuse to pay a claim
D) The insurer is obligated to reduce the payout amount based on the breach


3. Which of the following is not a typical requirement for the formation of an insurance contract?

A) The disclosure of a medical history
B) An offer to insure
C) An acceptance of the offer
D) The payment of a premium.


4. The principle of indemnity is the

A) placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
B) placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
C) obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
D) obligation of the insurer to provide a maximum sum insured or limit of liability.


5. A property policy contains a condition regarding prompt loss notification. If the insured fails to comply with this condition, in practice, the insurer is likely to

A) settle the claim and recover its outlay from the insured.
B) avoid the claim automatically due to the breach of the policy condition.
C) only avoid the claim if the delay has seriously prejudiced its investigation and handling of the claim.
D) settle the claim and cancel the insurance policy from inception.


Solutions:

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

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