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CII M05 Exam Syllabus Topics:

CII Insurance law (IL) Sample Questions:

Question 1

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

A. The original cost, less wear and tear.
B. The replacement cost, less wear and tear.
C. The original cost in full.
D. The replacement cost in full.

Question 2

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

A. The insured's right to receive compensation up to the value of their loss
B. The insurer's right to reduce the claim payout
C. The insurer's right to pursue a third party responsible for the loss
D. The insured's obligation to provide all relevant documents to the insurer

Question 3

In the context of insurance law, who is considered a third-party claimant?

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

Question 4

What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?

A. Wear and tear.
B. Loss of interest.
C. An excess.
D. Brokerage.

Question 5

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

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

Solutions: