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100+ Free CILA CH2 Practice Questions

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Sample CILA CH2 Practice Questions

Try these sample questions to test your CILA CH2 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 objective of First Notice of Loss (FNOL)?
A.Calculate salvage
B.Gather initial facts and mitigate further loss
C.Decline claim
D.Subrogate
Explanation: FNOL is the initial stage where the insurer gathers facts. Mitigation of loss is critical.
2Which is a key fraud indicator at FNOL?
A.Prompt notification
B.Inconsistent incident details
C.Detailed estimates
D.Cooperative insured
Explanation: Inconsistencies can indicate potential fraud. It warrants closer investigation.
3What does 'average' refer to in property insurance?
A.Mean settlement
B.Deductible
C.Proportionate reduction for underinsurance
D.Standard premium
Explanation: Average reduces a claim if sum insured is less than value at risk. Ensures premium matches risk.
4Property insured for £80k, valued at £100k. £20k loss. Payout with average?
A.£20k
B.£16k
C.£10k
D.£8k
Explanation: Payout = (80k / 100k) * 20k = £16k. Average applies.
5Who holds the burden of proof for policy cover?
A.Insurer
B.Adjuster
C.Insured
D.Broker
Explanation: Insured must prove valid loss within policy. Insurer proves exceptions.
6What is subrogation?
A.Cancelling policy
B.Insurer recovering costs from third party
C.Ex-gratia claim
D.Appointing expert
Explanation: Subrogation allows insurer to pursue negligent third party. Prevents insured profit.
7When to set initial reserve?
A.After settlement
B.Promptly after FNOL
C.Once repairer chosen
D.For litigation only
Explanation: Reserves set promptly based on FNOL. Adjusted as facts emerge.
8Primary purpose of site visit?
A.Collect premium
B.Verify circumstances and scope
C.Sign contract
D.Sell cover
Explanation: Site visits establish facts and extent. Crucial for coverage.
9£500 excess. Agreed loss £2,000. Payment?
A.£2,500
B.£2,000
C.£1,500
D.£500
Explanation: Excess is deducted. £2k - £500 = £1,500.
10What is proximate cause?
A.Recent event
B.Distant event
C.Active efficient cause
D.Uninsured peril
Explanation: Proximate cause is the dominant cause. Determines coverage.

About the CILA CH2 Exam

CILA Certificate CH2 Claims Handling is the claims-handling practice paper of the CILA Certificate in Insurance Claims Handling. It covers policy construction, conditions and warranties, common perils, claims validation, mitigation, average and underinsurance, repudiation, reasonable care, gradually operating causes and financial crime/fraud. The live exam is 45 MCQs in 60 minutes via Pearson VUE.

Assessment

Computer-based multiple-choice examination. CH2 is a compulsory Certificate paper alongside CH1; candidates then take either CH3 (general specific losses) or CH4 (liability specific losses). Official exams are delivered by Pearson VUE at a test centre or via OnVUE online proctoring.

Time Limit

60 minutes for 45 multiple-choice questions

Passing Score

Pass mark varies slightly by paper weighting and is no higher than 75% (CILA Certificate Handbook).

Exam Fee

£360 per Certificate exam entry via Pearson VUE (confirm current fee when booking). Resits are charged again at the then-current rate. CILA membership is required to register and attain the qualification. (Chartered Institute of Loss Adjusters (CILA))

CILA CH2 Exam Content Outline

10%

Insurance Policy Construction

Typical sections of an insurance policy, conditions, warranties and how wording drives claims outcomes.

15%

Claims Validation

Validating cause of loss, existence of insured items, and value of loss or damage.

10%

Negotiation and Mitigation

Negotiation preparation and conduct, and the insured's duty to mitigate.

10%

Underinsurance and Average

How insurers deal with underinsurance and applying 'average' to settlement figures.

8%

Claims Repudiation

When claims should be repudiated, including breach of condition precedent and policy voiding.

15%

Common Perils

Perils commonly covered in general insurance, with supporting case law and definitions.

8%

Reasonable Care and Gradually Operating Causes

Policyholder's duty of reasonable care and how gradually operating causes affect a claim.

14%

Financial Crime, Fraud Detection and Prevention

Money laundering regulation, fraud in its legal context, fraud indicators and prevention.

5%

Subrogation, Salvage and Recovery

Insurer recovery rights, priority between insurer and insured, and salvage handling.

5%

Reserving and Settlement

Setting reserves, settlement options and ex gratia considerations.

How to Pass the CILA CH2 Exam

What You Need to Know

  • Passing score: Pass mark varies slightly by paper weighting and is no higher than 75% (CILA Certificate Handbook).
  • Assessment: Computer-based multiple-choice examination. CH2 is a compulsory Certificate paper alongside CH1; candidates then take either CH3 (general specific losses) or CH4 (liability specific losses). Official exams are delivered by Pearson VUE at a test centre or via OnVUE online proctoring.
  • Time limit: 60 minutes for 45 multiple-choice questions
  • Exam fee: £360 per Certificate exam entry via Pearson VUE (confirm current fee when booking). Resits are charged again at the then-current rate. CILA membership is required to register and attain the qualification.

Keys to Passing

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

CILA CH2 Study Tips from Top Performers

1Map each CH2 syllabus heading to a short checklist of definitions and one worked example, especially for average, subrogation and repudiation.
2Learn the Fraud Act 2006 and money-laundering requirements separately from policy conditions and warranties — CH2 often tests which regime applies and what action the handler should take.
3Practise applying 'average' to numerical settlement figures until the (sum insured / value at risk) x loss formula is automatic.

Frequently Asked Questions

What is CILA Certificate CH2 and who is it for?

CH2 Claims Handling is the claims-handling practice paper of the CILA Certificate in Insurance Claims Handling. It is aimed at claims handlers, loss adjusters and others building a professional claims career, and must be passed (or exempted) with CH1 and either CH3 or CH4 to attain the Certificate membership grade.

How many questions are on the live CILA CH2 exam and how long do I get?

The official CH2 exam is 45 multiple-choice questions in 60 minutes, sat via Pearson VUE at a test centre or through OnVUE online proctoring. This free practice bank has 100 questions for extra syllabus coverage and revision.

What is the CILA CH2 pass mark and fee?

CILA states the pass mark varies slightly with question weighting and is no higher than 75%. Exam entry for CH2 costs £360 via Pearson VUE (confirm the current fee when booking). CILA membership is required to sit and attain the qualification.

Can I get an exemption from CILA CH2?

Exemption routes are limited for CH2; check with CILA Customer Service for the latest recognition-of-prior-learning position before booking, as exemptions are primarily advertised for CH1 (for holders of certain CII qualifications).