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100+ Free CILA CH3 Practice Questions

Pass your CILA Certificate CH3 Handling Claims for Specific Losses (Option 1 — General) exam on the first try — instant access, no signup required.

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Sample CILA CH3 Practice Questions

Try these sample questions to test your CILA CH3 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following is typically required for a claim to be considered 'storm' damage under a standard UK property policy?
A.Heavy rainfall causing localized flooding
B.Violent winds usually accompanied by rain, hail, or snow
C.Any precipitation exceeding 10mm in an hour
D.Damage caused by frost expanding within pipes
Explanation: In UK insurance, a storm generally refers to violent winds often accompanied by rain, hail, or snow. Ordinary rainfall or frost does not constitute a storm.
2A property is insured for £200k but its true value at risk is £300k. It suffers a £60k fire loss. Under average, how much will the insurer pay?
A.£40k
B.£60k
C.£200k
D.£20k
Explanation: The average formula is (Sum Insured / Value at Risk) x Loss. (£200k / £300k) x £60k = £40k.
3What is the primary difference between 'subsidence' and 'settlement'?
A.Subsidence is downward movement of the site, settlement is downward movement due to building weight.
B.Subsidence only occurs in clay soils.
C.Subsidence is sudden, settlement is gradual.
D.They are interchangeable terms.
Explanation: Subsidence involves ground movement beneath the building, whereas settlement is compaction of soil due to the building's weight.
4In Business Interruption, what is the 'indemnity period'?
A.Premium payment period
B.Max period for loss of gross profit post-damage
C.Rebuild time
D.Waiting period
Explanation: The maximum duration the business is compensated for loss of profit or increased costs.
5Which valuation basis provides 'new for old' cover without wear and tear deduction?
A.Indemnity
B.Reinstatement
C.Day One Basis
D.Market Value
Explanation: Reinstatement basis provides new for old cover.
6What is the primary purpose of the 'Public Authorities Clause'?
A.Fines coverage
B.Extra rebuilding costs to comply with statutory regulations
C.Local authority liability
D.Damage by authorities
Explanation: Covers extra reinstatement costs to comply with statutory regulations post-damage.
7What is 'Increased Cost of Working' (ICOW)?
A.Premium increase
B.Extra costs to avoid turnover reduction
C.Expansion staff cost
D.Wage inflation
Explanation: ICOW covers extra costs incurred solely to minimize turnover loss.
8Difference between 'Escape of Water' and 'Flood'?
A.EoW is internal pipes, Flood is external inundation.
B.EoW is clean, Flood is dirty.
C.No difference.
D.EoW is sudden, Flood is gradual.
Explanation: EoW is from fixed water apparatus inside, flood is external water inundation.
9Describe 'Day One Reinstatement'.
A.Start next day.
B.Insured declares value day one, insurer provides inflation uplift.
C.Original build value.
D.First day loss only.
Explanation: Insured states value day one; policy applies inflation uplift.
10What is meant by 'matching items'?
A.Pairs and sets clause limits replacing undamaged items.
B.Exact colour match.
C.Cash settlement.
D.Cheaper alternative.
Explanation: Policies usually limit liability to the damaged item only, not the whole set.

About the CILA CH3 Exam

CILA Certificate CH3 Handling Claims for Specific Losses (Option 1 — General) is the optional 'general specific losses' paper of the CILA Certificate in Insurance Claims Handling. It covers damages and reserving for injury claims, civil procedure rules, business interruption, alternative accommodation, catastrophe claims handling, property damage assessment, subsidence, escape of water and policy reinstatement. The live exam is 45 scenario-based MCQs in 90 minutes via Pearson VUE.

Assessment

Computer-based multiple-choice examination including scenario-based items. CH3 is the 'Option 1 — General' optional paper for the CILA Certificate; candidates take it alongside CH1 and CH2 (or take CH4 — Option 2 Liability — instead). Official exams are delivered by Pearson VUE at a test centre or via OnVUE online proctoring.

Time Limit

90 minutes for 45 multiple-choice questions (scenario-based)

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 CH3 Exam Content Outline

12%

Damages and Reserving of Injury Claims

Personal injury reserve components and reserving practice for property-related injury claims.

10%

Civil Procedure Rules for Claims Handlers

Letters of claim, admissions, disclosure, experts and Part 36 offers.

18%

Business Interruption Claims

Identifying BI, types of cover, gross profit, rate of gross profit and mitigation.

10%

Alternative Accommodation and Additional Costs

Temporary accommodation, additional costs of working and equivalent reinstatement.

10%

Catastrophe Claims Handling

Surge events, triage, resourcing and prioritisation.

15%

Property Damage Assessment

Buildings and contents losses, scope of damage, drying, cleaning and reinstatement vs repair.

10%

Subsidence and Ground Movement

Subsidence, heave, landslip, tree roots, site investigation and monitoring.

8%

Escape of Water and Mould

Trace and access, leak detection, drying, consequential damage and mould.

7%

Policy Conditions and Reinstatement

Day-one reinstatement, average, pairs and sets, and betterment.

How to Pass the CILA CH3 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 including scenario-based items. CH3 is the 'Option 1 — General' optional paper for the CILA Certificate; candidates take it alongside CH1 and CH2 (or take CH4 — Option 2 Liability — instead). Official exams are delivered by Pearson VUE at a test centre or via OnVUE online proctoring.
  • Time limit: 90 minutes for 45 multiple-choice questions (scenario-based)
  • 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 CH3 Study Tips from Top Performers

1Work through the official CILA CH3 course book end-to-end before practising; the exam is directly based on its content and worked examples.
2Master the gross profit / rate of gross profit calculations and the day-one reinstatement vs indemnity basis distinction — these are reliable BI and policy-condition test areas.
3For subsidence and escape-of-water questions, focus on cause-vs-consequence analysis (proximate cause) and the trace-and-access extension position, not just the repair estimate.

Frequently Asked Questions

What is CILA Certificate CH3 and who is it for?

CH3 Handling Claims for Specific Losses (Option 1 — General) is the optional 'general specific losses' paper of the CILA Certificate in Insurance Claims Handling. It is aimed at claims handlers and loss adjusters dealing with property, business interruption and catastrophe claims, and is taken alongside CH1 and CH2 to attain the Certificate membership grade. CH4 (Option 2 — Liability) is the alternative optional paper.

How many questions are on the live CILA CH3 exam and how long do I get?

The official CH3 exam is 45 scenario-based multiple-choice questions in 90 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 CH3 pass mark and fee?

CILA states the pass mark varies slightly with question weighting and is no higher than 75%. Exam entry for CH3 costs £360 via Pearson VUE (confirm the current fee when booking). CILA membership is required to sit and attain the qualification.

Should I take CH3 or CH4?

CH3 covers general specific losses (property damage, business interruption, catastrophe, alternative accommodation). CH4 covers liability-specific losses (tort, EL/PL, products, damages quantification). Choose the option that best matches your day-to-day claims role; both satisfy the optional-paper requirement for the Certificate.