[Nov-2025] CII M05 DUMPS WITH REAL EXAM QUESTIONS [Q17-Q34]

14Nov 2025 by admin No Comments

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[Nov-2025] CII M05 DUMPS WITH REAL EXAM QUESTIONS

2025 New PracticeMaterial M05 PDF Recently Updated Questions

Q17. The test of the materiality of facts in an insurance contract is defined according to the opinion of a

prudent underwriter.

diligent broker.

reasonable person.

honest proposer.

Q18. In a chain of events, the proximate cause of a loss is always the

only event contributing towards the loss.

last event before the loss occurs.

dominant event leading to the loss.

only event which is not excluded by the terms of the policy.

Q19. In the context of insurance, what does “utmost good faith” (uberrimae fidei) require?

Both parties must fully disclose all relevant information

The insurer must offer the policyholder the best possible coverage

The policyholder must always pay premiums in advance

The insurance contract must be written in simple, easy-to-understand language

Q20. 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?

Wear and tear.

An excess.

Brokerage.

Loss of interest.

Q21. 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.

Q22. The principle of subrogation prevents a policyholder from profiting from

claiming under both his insurance policy and against any negligent third party.

submitting a full claim recovery under more than one insurance policy.

retaining salvaged property.

assigning abandonment rights to the insurer.

Q23. In which of the following cases can the insurer void an insurance contract?

If the policyholder does not pay the premium

If the insurer fails to provide a certificate of insurance

If the policyholder has misrepresented a material fact at the time of underwriting

If the insurer cannot locate the policyholder

Q24. A riot results in a shop being damaged and the shopowner’s insurer settling the claim. A subrogation right enabling the insurer to sue the police authority arises under

tort.

a condition subsequent to liability.

a condition precedent to liability.

statute.

Q25. Which of the following best defines an insurance contract?

A contract for the protection of physical property only.

A contract in which one party agrees to indemnify another against specified risks in exchange for premiums.

A contract that only applies to personal property insurance.

A contract where the insurer assumes no liability.

Q26. According to statute law, an unfair term in a consumer insurance contract is defined as one which

provides insurance where the scope of cover is narrow compared to the premium charged.

causes a significant imbalance in the parties’ rights to the detriment of the consumer.

has been individually negotiated and is to the detriment of either one of the parties.

does not restrict liability for death or personal injury.

Q27. The principle of indemnity is the

obligation of the insurer to provide a maximum sum insured or limit of liability.

placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.

obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.

placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.

Q28. Which of the following regulatory bodies oversees the conduct of insurance firms in the UK?

Financial Conduct Authority (FCA)

Prudential Regulation Authority (PRA)

Bank of England

Insurance Ombudsman Service

Q29. What does the Consumer Insurance (Disclosure and Representations) Act 2012 require from consumers applying for insurance?

Consumers must disclose all material facts honestly and accurately.

Consumers must answer questions about their past claims history.

Consumers are required to pay for claims made during the policy term.

Consumers must choose an insurer based on premium prices alone.

Q30. Which of the following is an example of a condition precedent in an insurance contract?

A policyholder’s obligation to make premium payments

The insured’s duty to disclose any material changes in their circumstances

The insurer’s requirement to pay claims within a specific period after notification

A policyholder’s agreement to not engage in fraudulent behavior

Q31. What is the principle of utmost good faith in insurance?

Insurers must provide coverage for all types of risks.

Both parties in the contract must act honestly and disclose all material facts.

A policyholder’s claims must always be paid out without dispute.

The insurance policy must be renewed annually.

Q32. 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.

Q33. Which of the following is a feature of an insurance contract under the principle of “utmost good faith”?

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

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

Both parties must agree on the premium amount in advance.

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

Q34. Which of the following is a key principle of insurance that ensures that a policyholder is not overcompensated for a loss?

Utmost good faith

Indemnity

Subrogation

Insurable interest

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