Insurance Law (M05)

This unit looks at general legal principles, how the legal system works and legal personality - how the law applies to different types of natural persons and juristic persons. It considers the law of torts and examines civil wrongs such as negligence, trespass and nuisance. This is relevant to liability insurance because most claims under liability policies are based on tort. It also considers the law of contract. This is central to the business of insurance where an insurance policy is a contract in which insurers promise to pay claims. It then examines the law of agency which is often regarded as a branch of law of contract. This is important because the majority of insurance policies are sold through an agent of some type.

It then deals with the law of insurance contracts and the legal principles of insurable interest and utmost good faith. It looks the legal rules which govern the duties of the insured when they make a claim, how the loss is measured and how insurers may call upon others to share the loss.

Building a successful career in insurance

This course is relevant for anyone seeking to develop their knowledge and skills for a rewarding career in insurance or in a support role. Insurance Law (M05) counts towards a Diploma in Insurance. It may also count towards the Advanced Diploma in Insurance.

Please note it is assumed that you already have knowledge of the fundamental principles of insurance as covered in Insurance, Legal and Regulatory (IF1) or equivalent examinations.

Summary of learning outcomes 

1. Understand the nature and sources of English law and the concept of natural legal persons.
2. Understand the principles of the law of torts and the characteristics of the main torts.
3. Understand the law of contract.
4. Understand the law of agency and its application to insurance.
5. Understand the main principles governing the formation of insurance contracts.
6. Understand the classification and interpretation of insurance contract terms, the effects of their breach and other vitiating factors.
7. Understand the main legal principles governing the making of an insurance claim.
8. Understand how losses are measured and how the principle of indemnity applies to insurance claims.
9. Understand how the principles of subrogation and contribution apply to insurance claims.

Assessment

• Coursework assignment with 10 compulsory short answer questions (marked within 63 calendar days of submission); and a 60 minute exam comprising 50 multiple-choice questions (MCQs)
• 60% coursework pass mark
• The exam standard pass mark is 65% (for more information on standard pass marks please see here)
• The average pass rate for those completing Diploma in Insurance mixed assessment units in full is currently 91.3%
• Coursework assignment to be submitted within 6 months of enrolment
• Exam to be passed within 18 months of enrolment (only first exam entry included as part of the enrolment)

Revision aids available ** Please check individual shop pages for availability dates **

The revision aids available for this unit are listed below. Find out more details.

• Key Facts Booklet

Units treated as equivalent

Due to the extent of syllabus overlap, certain combinations of current and withdrawn units will result in only one award of CII credits.

If a withdrawn equivalent is held you may not need to complete a current unit in order to satisfy a qualification's completion rules. Clarification should always be sought from CII Customer Service.

Find out more about CII credit awards for equivalent units

Course delivery

Instructions on accessing your course on RevisionMate will be sent to your registered email address. This is typically within two working days of your order being placed, but may be longer, particularly if payment is made by bank transfer.