100+ Free CAii/CMII Practice Questions

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Pre-Contract Examination for Insurance Agents (Malaysia)

Practice Questions100 questions

2026 Statistics

Key Facts: CAii/CMII Exam

100 MCQs

Final examination is 100 multiple-choice questions

Aii CAii brochure

70% pass

Candidates need 70 correct out of 100

Aii CAii brochure

180 minutes

Time allowed for the 100-question examination

Aii AAii brochure assessment structure (subject 301)

RM 610

Self-study package total including membership, registration, e-book and exam

Aii CAii brochure (2024)

RM 150

Repeat examination fee

Aii CAii brochure

8 / 10 chapters

General stream has 8 chapters; Life stream has 10 chapters

Aii CAii brochure

3 credits

Credits awarded on completion of a CAii stream

Aii CAii brochure

100

Free original practice questions here

OpenExamPrep

CAii (formerly CMII) is Malaysia's Aii foundation insurance certificate: 100 multiple-choice questions, 180 minutes, 70% pass mark, General or Life stream. Self-study packages total about RM 610 including exam; class-based totals about RM 1,820; resit fee RM 150. It is a professional staff certificate, not the PCEIA agent exam. This free bank gives 100 original practice questions across the eight General-stream chapters.

Sample CAii/CMII Practice Questions

Try these sample questions to test your CAii/CMII exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1In the context of insurance, risk is best defined as:

A.The certainty that a loss will occur within a year

B.The premium charged for a policy

C.The uncertainty of a financial loss arising from a peril

D.The profit target set by the insurer

Explanation: Risk in insurance means uncertainty about whether a financial loss will occur. Insurance transfers that uncertainty from the insured to the insurer in exchange for a premium.

2Which of the following is a pure risk rather than a speculative risk?

A.Buying shares on the stock market

B.Starting a new café business

C.Damage to a warehouse caused by fire

D.Betting on a horse race

Explanation: Pure risk involves only loss or no loss, with no chance of gain. Fire damage is a classic pure risk and is the type of risk insurance typically covers. Speculative risks involve possible gain or loss.

3The primary economic function of insurance is to:

A.Eliminate every peril that could cause loss

B.Guarantee investment returns for policyholders

C.Transfer the financial consequences of risk from the insured to the insurer

D.Replace the need for risk control and safety measures

Explanation: Insurance pools similar risks and transfers the financial impact of covered losses to the insurer. It does not remove the peril itself or replace good risk management.

4A peril is best described as:

A.A condition that increases the chance of loss

B.The financial value of an insured asset

C.The cause of a possible loss, such as fire, flood or theft

D.The excess deducted from a claim payment

Explanation: A peril is the cause of loss (for example fire or theft). A hazard is a condition that increases the chance or severity of loss arising from a peril.

5Leaving oily rags near a heater increases the chance of fire. This is an example of a:

A.Moral hazard

B.Speculative peril

C.Physical hazard

D.Contribution clause

Explanation: Physical hazards are tangible conditions of property or surroundings that raise the likelihood or severity of loss. Oily rags near heat are a physical fire hazard.

6An insured who is careless about securing property because 'the insurer will pay' is illustrating:

A.Physical hazard

B.Proximate cause

C.Moral hazard

D.Insurable interest

Explanation: Moral hazard is the tendency for behaviour to change after insurance is in place, increasing the chance or size of loss. Carelessness because of cover is a classic moral hazard.

7Which statement about risk management is most accurate for an insurance organisation?

A.Risk management means buying insurance and ignoring all other controls

B.Risk management applies only to investment portfolios

C.Risk management includes identifying, evaluating and treating risks, of which insurance is one treatment option

D.Risk management is required only after a major claim

Explanation: Sound risk management identifies and evaluates risks, then treats them through avoidance, control, retention or transfer. Insurance is one form of risk transfer, not the whole process.

8Which of the following risks is generally considered uninsurable on standard commercial terms?

A.Fire damage to a factory building

B.Theft of stock from a warehouse

C.Deliberate loss caused by the insured for personal gain

D.Accidental damage to a private motor car

Explanation: Losses deliberately caused by the insured for gain are against public policy and the principle of utmost good faith. Standard policies do not cover intentional fraud by the insured.

9Pooling of risk in insurance works because:

A.Every insured will suffer a loss every year

B.Insurers refuse to settle any valid claims from the pool

C.The losses of the few are shared among the premiums of the many

D.Premiums are identical for every risk regardless of exposure

Explanation: Insurance pools many similar exposures so that the cost of losses suffered by a minority is funded by premiums collected from the whole pool, spreading the financial impact.

10A frequency-severity analysis that finds rare but catastrophic losses usually points insurers toward:

A.Ignoring the exposure completely

B.Charging zero premium

C.Seeking reinsurance or special high-limit arrangements

D.Treating the risk as speculative gambling

Explanation: Low-frequency, high-severity risks can threaten an insurer's solvency if retained in full. Reinsurance or specialised high-limit covers help spread catastrophic exposures.

About the CAii/CMII Exam

The Certificate of the Asian Institute of Insurance (CAii), formerly the Certificate of the Malaysian Insurance Institute (CMII), is Aii's foundation professional qualification for insurance staff across the Malaysian market. Learners choose a General or Life stream and sit a 100-question multiple-choice final examination with a 70% pass mark. The syllabus, supported by the textbook Insurance Principles and Market Practice, covers risk and insurance, the marketplace, conventional and takaful principles, regulation and consumer protection, underwriting, claims, and product knowledge. CAii is distinct from PCEIA (the agent pre-contract exam) and is a recognised stepping stone toward the Associateship of the Asian Institute of Insurance (AAii).

Assessment

100% final examination of 100 multiple-choice questions. Candidates choose the General Insurance stream (8 chapters) or the Life Insurance stream (10 chapters). Successful completion awards 3 credits and the CAii certificate. The same subject underpins AAii Level 1 core subject 301 Insurance Principles and Market Practice (General).

Time Limit

180 minutes (3 hours) for the 100-question examination.

Passing Score

70% (70 correct out of 100 multiple-choice questions).

Exam Fee

Self-study total RM 610 (membership RM 100 + registration RM 100 + course RM 410 inclusive of e-book and exam). Class-based total RM 1,820. Repeat examination fee RM 150. (Asian Institute of Insurance (Aii), formerly the Malaysian Insurance Institute (MII))

CAii/CMII Exam Content Outline

~13 questions

Risk and Insurance

Definition of risk, pure and speculative risk, perils and hazards, risk management treatments and the pooling function of insurance.

~12 questions

The Insurance Marketplace

BNM supervision, LIAM and PIAM, agents and brokers, bancassurance, reinsurance, takaful and insurer corporate functions and governance.

~14 questions

Principles of Insurance (Conventional and Takaful)

Insurable interest, utmost good faith, material facts, indemnity, average, subrogation, contribution, proximate cause and takaful tabarru'.

~13 questions

Insurance Regulations and Consumer Protection

FSA 2013, IFSA 2013, PIDM TIPS, Ombudsman for Financial Services, AML obligations, market conduct and compulsory motor third-party cover.

~12 questions

Underwriting Procedures

Proposal forms, risk selection, loadings, warranties, excesses, declinature, cover notes and underwriting guidelines.

~12 questions

Claims Procedures

Notification, investigation, evidence, salvage, discharge, fraud, ex gratia, reservation of rights and limitation issues.

~12 questions

General Insurance Products

Motor, fire, business interruption, liability, marine cargo, personal accident, householders, engineering and general takaful.

~12 questions

Life Assurance Products

Term, endowment, whole life, investment-linked, nomination, free-look, grace period, annuities, family takaful and contrast with PCEIA.

How to Pass the CAii/CMII Exam

What You Need to Know

Passing score: 70% (70 correct out of 100 multiple-choice questions).
Assessment: 100% final examination of 100 multiple-choice questions. Candidates choose the General Insurance stream (8 chapters) or the Life Insurance stream (10 chapters). Successful completion awards 3 credits and the CAii certificate. The same subject underpins AAii Level 1 core subject 301 Insurance Principles and Market Practice (General).
Time limit: 180 minutes (3 hours) for the 100-question examination.
Exam fee: Self-study total RM 610 (membership RM 100 + registration RM 100 + course RM 410 inclusive of e-book and exam). Class-based total RM 1,820. Repeat examination fee RM 150.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CAii/CMII Study Tips from Top Performers

1Master the six classic principles — insurable interest, utmost good faith, indemnity, subrogation, contribution and proximate cause — and how takaful expresses mutual risk-sharing through tabarru'.

2Know the Malaysian regulatory map: FSA 2013 for conventional insurance, IFSA 2013 for takaful, BNM as supervisor, PIDM TIPS and the Ombudsman for Financial Services.

3Practise distinguishing underwriting tools (loadings, warranties, excesses, declinature) from claims tools (salvage, discharge, reservation of rights, ex gratia).

4For products, be able to contrast motor third-party vs comprehensive, fire vs business interruption, and term vs endowment vs investment-linked life plans.

5Use the official Insurance Principles and Market Practice textbook first, then drill weak chapters with timed 100-question practice aiming above 70%.

6Remember CAii is not PCEIA: revise to the 70% standard expected for this professional certificate.

Frequently Asked Questions

What is CAii and how does it relate to CMII?

CAii is the Certificate of the Asian Institute of Insurance. It is the current name for the former Certificate of the Malaysian Insurance Institute (CMII) after MII rebranded as Aii. The foundation certificate role and assessment style remain the same.

How many questions are on the CAii exam and what is the pass mark?

The final examination has 100 multiple-choice questions and the passing mark is 70% (70 correct answers). Assessment is 100% based on that final exam.

How long is the CAii examination?

Candidates have 180 minutes (3 hours) to complete the 100-question paper, consistent with Aii's published assessment structure for AAii Level 1 core subject 301 / the CAii certificate examination.

Is CAii the same as PCEIA?

No. PCEIA is the Pre-Contract Examination for Insurance Agents required for agent registration and typically uses a 50% overall pass mark on the standard route. CAii/CMII is a separate professional foundation certificate for insurance staff with a 70% pass mark.

What are the CAii fees?

According to Aii's CAii brochure, self-study totals RM 610 (membership RM 100, registration RM 100, course RM 410 including e-book and exam). Class-based virtual or face-to-face totals RM 1,820. The repeat examination fee is RM 150.

Are these official Aii examination questions?

No. These are original OpenExamPrep practice questions modelled on the published CAii/CMII syllabus chapters. Aii provides the official textbook, classes and examination separately.