100+ Free CII M96 Practice Questions

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Key Facts: CII M96 Exam

Diploma Credits

CII M96 Specification

50 Hours

Study Time

CII M96 Syllabus

55%

Pass Mark

CII Assessment Rules

Mixed

Coursework + MCQ

CII Diploma Guide

CII M96 is a 25-credit Level 4 Diploma unit covering Employers' Liability compulsory insurance, Public and Products Liability, Professional Indemnity, D&O, liability underwriting, and claims management. Note: The 100 practice MCQs in this module serve as an English-language study adaptation for revision and do not replace official CII coursework or exam sittings.

Sample CII M96 Practice Questions

Try these sample questions to test your CII M96 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Employers' Liability (Compulsory Insurance) Act 1969, what is the mandatory statutory minimum limit of indemnity required for an employer in the United Kingdom for any one occurrence?

A.£2,000,000

B.£5,000,000

C.£10,000,000

D.£25,000,000

Explanation: The Employers' Liability (Compulsory Insurance) Act 1969 establishes a legal statutory minimum limit of indemnity of £5,000,000 for any one occurrence. Although standard UK commercial insurance market policies routinely provide a limit of £10,000,000, £5,000,000 remains the strict statutory minimum required by law.

2What is the primary statutory purpose of the Employers' Liability (Compulsory Insurance) Act 1969?

A.To ensure employers are protected against financial insolvency following property damage

B.To guarantee that employees who sustain bodily injury or disease at work receive compensation if their employer is liable

C.To eliminate the requirement for employees to prove negligence when claiming compensation

D.To regulate health and safety standards and conduct workplace inspections

Explanation: The primary objective of the Employers' Liability (Compulsory Insurance) Act 1969 is employee protection. It ensures that employers hold valid insurance so that employees injured or rendered ill through work activities will receive compensation even if the employer becomes insolvent.

3Which of the following employers is exempt from the statutory requirement to maintain Employers' Liability insurance under the 1969 Act?

A.A limited company employing only family members who are registered directors

B.A sole trader employing unrelated staff on zero-hours contracts

C.A family-owned business structured as an unincorporated sole trader where all employees are closely related to the employer

D.A private healthcare provider employing part-time nursing personnel

Explanation: Unincorporated family businesses where all employees are closely related to the employer (such as spouse, parent, child, brother, sister) are exempt under the ELCI Act 1969. However, this exemption does not apply to incorporated limited companies, even if all directors/employees are family members.

4Under the Employers' Liability (Compulsory Insurance) Regulations, what requirement applies to displaying an employer's Certificate of Insurance?

A.It must be published in a national newspaper annually

B.It must be displayed physically at each place of business or made accessible electronically to all employees

C.It must be lodged with Companies House within 14 days of inception

D.It must be physically handed to every employee upon commencing employment

Explanation: Regulations allow employers to display the Certificate of Employers' Liability Insurance physically at premises or host it electronically, provided all employees have reasonable and routine electronic access to inspect it.

5What is the primary role of the Employers' Liability Tracing Office (ELTO) in the UK insurance market?

A.To inspect commercial premises for health and safety compliance

B.To maintain an electronic database enabling claimants to trace historical Employers' Liability policies for industrial disease claims

C.To collect insurance premium tax on behalf of HM Revenue & Customs

D.To arbitrate disputes regarding wage roll premium calculations between brokers and underwriters

Explanation: ELTO maintains a central database containing policy details and Employer Reference Numbers (ERN / PAYE numbers) to help victims of historical latent occupational diseases (such as mesothelioma) trace the relevant insurer at the time of exposure.

6Which landmark judicial decision established the four fundamental common law duties owed by an employer to an employee?

A.Donoghue v Stevenson [1932]

B.Wilsons & Clyde Coal Co Ltd v English [1938]

C.Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964]

D.Rylands v Fletcher [1868]

Explanation: Wilsons & Clyde Coal Co Ltd v English [1938] established that an employer owes a personal, non-delegable duty of care to employees across four categories: competent staff, adequate plant and equipment, safe place of work, and safe system of work.

7What does it mean in legal terms that an employer's common law duty of care is 'non-delegable'?

A.The employer cannot assign daily supervisory duties to managers

B.The employer remains legally liable for employee safety even if safety duties are delegated to independent specialists

C.The employer cannot purchase insurance to cover bodily injury claims

D.The employee cannot seek legal representation in court

Explanation: A non-delegable duty means that while an employer can delegate the performance of safety tasks to managers or external safety consultants, the employer cannot delegate legal responsibility. If the consultant acts negligently, the employer remains directly liable to the employee.

8In distinguishing an 'employee' from an 'independent contractor' for Employers' Liability, which legal test considers degree of supervision, provision of tools, and financial risk?

A.The neighborhood test

B.The economic reality / multiple test

C.The strict liability test

D.The eggshell skull rule

Explanation: The economic reality (or multiple) test—formulated in cases like Ready Mixed Concrete v MPNI—weighs multiple factors including control, ownership of tools, method of payment, and financial risk to determine whether a contract of service (employment) exists.

9In UK liability underwriting, how are Labour-Only Sub-Contractors (LOSC) treated differently from Bona-Fide Sub-Contractors (BFSC) under an Employers' Liability policy?

A.LOSC are treated as independent contractors and excluded from the EL wage roll

B.LOSC are treated as employees for EL purposes and their earnings must be declared in the wage roll

C.BFSC must be included in the EL wage roll because they have no insurance of their own

D.BFSC and LOSC are treated identically and carry no impact on premium rating

Explanation: Labour-only sub-contractors work under the direction and supervision of the policyholder using the policyholder's tools. In law and underwriting, LOSC are deemed employees, and their payments must be declared in the EL wage roll. Conversely, Bona-Fide Sub-Contractors carry their own insurance and work independently.

10What was the legal effect of Section 69 of the Enterprise and Regulatory Reform Act 2013 (ERRA 2013) on health and safety civil claims in the UK?

A.It created strict civil liability for any breach of health and safety regulations

B.It removed automatic civil liability for breach of statutory duty under health and safety regulations, requiring claimants to establish common law negligence

C.It abolished Employers' Liability insurance requirements for construction firms

D.It capped damages for personal injury claims at £100,000

Explanation: Section 69 of ERRA 2013 amended the Health and Safety at Work etc. Act 1974 to remove breach of statutory duty as an automatic grounds for a civil claim. Injured workers must now prove negligence at common law (failure to exercise reasonable care), rather than relying solely on strict breach of H&S regulations.

About the CII M96 Exam

The CII M96 Liability Insurances unit tests candidate knowledge of UK liability insurance products, statutory compulsory covers, legal liabilities in tort and contract, underwriting considerations, rating methods, and claims handling protocols. Important Notice: The 100 local multiple-choice practice questions provided here are an English-language study adaptation for revision and exam practice; they do not replace required written coursework assignments or official CII exam sittings.

Assessment

Mixed assessment: 3 written coursework assignments (up to 3,000 words each) and 1 multiple-choice question exam sitting of 50 questions (60 minutes).

Time Limit

60 minutes (MCQ exam sitting)

Passing Score

55%

Exam Fee

£200 - £300 (Chartered Insurance Institute (CII))

CII M96 Exam Content Outline

25%

Employers' Liability Compulsory Insurance

Employers' Liability (Compulsory Insurance) Act 1969, common law duty of care, health and safety legislation, occupational disease liability, and ELTO registration.

25%

Public Liability & Products Liability

Tort of negligence, Occupiers' Liability Acts 1957/1984, Consumer Protection Act 1987, strict liability, policy wordings, exclusions, turn-over rating, and limits of indemnity.

25%

Professional Indemnity & Directors' and Officers' (D&O)

Duties of care for professional advisors, Hedley Byrne v Heller, claims-made triggers, retroactive dates, run-off cover, Companies Act 2006 duties, and D&O Side A/B/C protection.

25%

Underwriting & Liability Claims Management

Risk assessment, wage roll and turnover rating, deductible structures, MoJ Pre-Action Protocols, Limitation Act 1980, case reserving, subrogation, and contribution.

How to Pass the CII M96 Exam

What You Need to Know

Passing score: 55%
Assessment: Mixed assessment: 3 written coursework assignments (up to 3,000 words each) and 1 multiple-choice question exam sitting of 50 questions (60 minutes).
Time limit: 60 minutes (MCQ exam sitting)
Exam fee: £200 - £300

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 M96 Study Tips from Top Performers

1Memorize statutory limits and requirements under the Employers' Liability (Compulsory Insurance) Act 1969 (£5 million statutory minimum).

2Understand the difference between 'occurrence-based' triggers (common in EL/PL) and 'claims-made' triggers (standard in PI and D&O).

3Familiarize yourself with landmark legal cases including Wilsons & Clyde Coal v English, Donoghue v Stevenson, Hedley Byrne v Heller, and Fairchild v Glenhaven.

4Practice numerical calculations for wage roll adjustment audits and Excess of Loss layer allocations.

Frequently Asked Questions

What is the assessment format for CII M96 Liability Insurances?

CII M96 is assessed via mixed assessment: candidates must complete 3 written coursework assignments and 1 multiple-choice exam sitting of 50 questions (60 minutes).

Does this 100-question practice bank replace the official CII coursework or exam sittings?

No. The 100 local MCQs in this question bank 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 M96?

The overall pass mark for CII Diploma units is typically 55% across both coursework and exam components.

Are premium and claims calculation questions tested in CII M96?

Yes. Candidates must understand wage roll rate adjustments, turnover exposure calculations, aggregate vs per-occurrence limit allocations, loss ratios, and Excess of Loss retention payouts.

100+ Free CII M96 Practice Questions

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