100+ Free CII M90 Practice Questions

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Key Facts: CII M90 Exam

Diploma Credits

CII Qualification Framework

50 Hours

Recommended Study Time

CII M90 Syllabus

70%

Pass Mark

CII Examination Standard

CII M90 is a 25-credit Level 4 Diploma unit testing cargo risks, Incoterms 2020, Institute Cargo Clauses, CMR carrier liability, and underwriting/claims. This 100-question practice set is an English-language study adaptation and does not replace official CII coursework or exam sittings.

Sample CII M90 Practice Questions

Try these sample questions to test your CII M90 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary function of Incoterms 2020 rules in international commercial transactions?

A.To transfer property ownership title of goods between buyer and seller

B.To define the division of tasks, costs, and risks associated with the transportation of goods between seller and buyer

C.To set international customs tax rates and tariffs for goods in transit

D.To govern maritime law disputes regarding vessel navigation and collision

Explanation: Incoterms rules, published by the International Chamber of Commerce (ICC), clearly define the respective obligations, costs, and risk transfer points between seller and buyer during carriage. They do not govern transfer of ownership title or customs tariffs.

2Under Incoterms 2020, which rule requires the seller to procure marine cargo insurance for the buyer's benefit as a mandatory default obligation?

A.FOB (Free On Board)

B.CFR (Cost and Freight)

C.CIF (Cost, Insurance and Freight)

D.EXW (Ex Works)

Explanation: Under CIF (Cost, Insurance and Freight), the seller is contractually required to procure marine cargo insurance covering the buyer's risk during carriage, with minimum cover corresponding to Institute Cargo Clauses (C).

3Under FOB (Free On Board) Incoterms 2020, at what exact point does the risk of loss or damage to the goods pass from seller to buyer?

A.When the goods are placed in the buyer's warehouse at the port of destination

B.When the goods are delivered into the custody of the carrier at the seller's factory

C.When the goods are loaded on board the vessel nominated by the buyer at the named port of shipment

D.When the ocean bill of lading is signed by the vessel's master

Explanation: Under FOB Incoterms 2020, risk transfers from seller to buyer when the goods are placed on board the vessel nominated by the buyer at the named port of shipment.

4What key change was introduced in Incoterms 2020 regarding default insurance cover requirements under CIP compared to CIF?

A.CIP requires minimum cover under ICC (C), whereas CIF requires ICC (A)

B.CIP requires 'All Risks' cover under ICC (A) by default, whereas CIF retains minimum cover under ICC (C)

C.Both CIP and CIF now mandate Institute War Clauses as a compulsory default

D.CIP no longer requires any insurance coverage to be arranged by the seller

Explanation: In Incoterms 2020, CIP (Carriage and Insurance Paid To) was updated to require the seller to obtain default insurance matching Institute Cargo Clauses (A) ('All Risks'), whereas CIF retained Institute Cargo Clauses (C) as the minimum default.

5Why does the International Chamber of Commerce (ICC) strongly recommend FCA instead of FOB for containerised cargo shipments?

A.FCA allows the seller to retain risk until final destination

B.Containerised goods are usually handed over to a carrier at a container terminal prior to being loaded on board ship

C.FCA eliminates all customs duty obligations for international buyers

D.FOB is only valid for air cargo transactions

Explanation: Containerised goods are typically delivered to a carrier at an inland container depot or terminal before loading on board. FCA reflects this handover point, whereas FOB applies risk transfer only when goods are physically on board the ship.

6Under EXW (Ex Works) Incoterms 2020, who is responsible for loading goods onto the collecting transport vehicle at the seller's premises?

A.The seller, at their own risk and expense

B.The buyer, at their own risk and expense

C.The freight forwarder as an independent third party

D.The local port authority

Explanation: Under EXW, the seller simply makes goods available at their premises. The buyer is responsible for loading the goods onto the collecting vehicle and bears all risk and cost of doing so.

7What is the key technical distinction between 'cargo sweat' and 'ship sweat' in transit cargo risk management?

A.Cargo sweat occurs when warm humid air enters a hold with cold cargo; ship sweat occurs when warm moist hold air condenses on cold ship structure

B.Cargo sweat affects steel goods; ship sweat affects agricultural commodities

C.Cargo sweat is caused by sea water ingress; ship sweat is caused by rainwater leakage

D.Cargo sweat is covered under ICC (C); ship sweat is excluded from all marine policies

Explanation: Cargo sweat happens when warm, humid air contacts colder cargo. Ship sweat happens when warm, moist air inside the cargo hold condenses on the cold steel hull or deckhead of the vessel.

8A buyer purchases goods valued at £90,000 invoice cost with £10,000 freight charges under CIF Incoterms 2020. Policy valuation is standard C+F plus 10%. What is the total sum insured?

A.£99,000

B.£100,000

C.£110,000

D.£121,000

Explanation: Cost + Freight (C+F) = £90,000 + £10,000 = £100,000. Applying the standard 10% uplift (to cover buyer's margin and incidental expenses) yields £100,000 * 1.10 = £110,000 sum insured.

9Does Incoterms 2020 deal with the transfer of legal ownership title of goods being transported?

A.Yes, title transfers at the exact moment risk transfers

B.No, transfer of title is governed by the sales contract and relevant legal frameworks such as the Sale of Goods Act

C.Yes, title transfers only when customs duties are fully paid

D.No, title remains with the freight carrier until final delivery

Explanation: Incoterms regulate delivery, costs, and risk transfer, but do NOT deal with transfer of title or property ownership, which is subject to the contract of sale and applicable national contract/property law.

10Under CPT (Carriage Paid To) Incoterms 2020, where does the risk of loss or damage pass to the buyer?

A.Upon delivery of the goods into the custody of the first carrier

B.Upon arrival of the transport vehicle at the named destination

C.Upon completion of import customs clearance at destination port

D.When the buyer pays the seller's commercial invoice

Explanation: Under CPT, the seller pays freight to the destination, but risk transfers to the buyer when goods are delivered to the first carrier.

About the CII M90 Exam

The CII M90 unit covers cargo and goods in transit insurances, including transit risks, Incoterms 2020, Institute Cargo Clauses (A, B, C), legal liability under CMR and RHA, underwriting, and claims management. Note: The 100 local MCQs provided here are an English-language study adaptation for practice and self-assessment and do not replace required written coursework/assignments or official exam sittings with the CII.

Assessment

Mixed assessment comprising coursework assignments and a 60-minute multiple-choice exam consisting of 50 MCQs.

Time Limit

60 minutes

Passing Score

70%

Exam Fee

£220 - £310 (Chartered Insurance Institute (CII))

CII M90 Exam Content Outline

25%

Cargo Risks & Incoterms 2020

Physical transit hazards, transport modes, seller and buyer obligations, and risk transfer points under Incoterms 2020.

30%

Institute Cargo Clauses (A, B, C) & Coverages

Analysis of ICC (A) All Risks vs ICC (B) and (C) Named Perils, general exclusions, Duration Clause (Transit Clause), and supplementary clauses.

25%

Carrier Liability & CMR Convention

Legal status of carriers, Road Haulage Association (RHA) conditions, CMR Convention terms, limit of liability per kg in SDR, and maritime/air liability.

20%

Underwriting & Cargo Claims Settlement

Underwriting risk parameters, open cover policy structures, agreed value vs basis of valuation, General Average, salvage, and subrogation.

How to Pass the CII M90 Exam

What You Need to Know

Passing score: 70%
Assessment: Mixed assessment comprising coursework assignments and a 60-minute multiple-choice exam consisting of 50 MCQs.
Time limit: 60 minutes
Exam fee: £220 - £310

Keys to Passing

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

CII M90 Study Tips from Top Performers

1Memorize the precise differences between Institute Cargo Clauses (A), (B), and (C), especially which perils are covered in (B) but excluded in (C).

2Understand the transfer of risk versus transfer of title for key Incoterms 2020 rules (e.g. FOB, CIF, DDP, CPT, CIP).

3Master CMR carrier liability calculation: 8.33 Special Drawing Rights (SDR) per kilogram gross weight.

Frequently Asked Questions

What is the assessment format for CII M90?

CII M90 is assessed via mixed assessment, which includes written coursework assignments and a multiple-choice question (MCQ) examination component, carrying 25 credits toward the CII Level 4 Diploma in Insurance.

Does this question bank replace CII coursework or official exams?

No. The 100 local MCQs provided in this online platform are an English-language study adaptation designed for practice and knowledge reinforcement. They do not replace required written coursework/assignments or official CII exam sittings.

What is the pass mark for CII M90?

The pass mark for CII Diploma multiple-choice exam components is typically 70%.

Are calculations included in M90?

Yes. M90 tests numerical calculations including converting SDR per kg for CMR carrier liability limits, calculating General Average contributions, basis of valuation additions (e.g., CIF + 10%), and claims indemnities after deductibles.

100+ Free CII M90 Practice Questions

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