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CIPS L5M2 Exam - Topic 1 Question 68 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 68
Topic #: 1

[All L5M2 Questions]

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit

A1,2,5

B1,3,4

C2,4,5

D3,4,5

Show Suggested Answer

Suggested Answer: A

Indemnity clauses should contain duties of both parties, a monetary limit and a time limit (1 2 and 5). It should also detail what types of costs are covered. These four points are explained on p.61. An indemnity clause doesn't necessarily signal a breach in contract, and levels of insurance are not relevant here.

by Cyndy at Apr 01, 2026, 10:48 PM

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Lou

18 days ago

I think insurance levels are crucial too, so B seems off.

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Alisha

23 days ago

Definitely need duties of both parties and a monetary limit!

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Lou

1 month ago

I thought the details of the breach were crucial, but I’m uncertain if they need to be included in every indemnity clause.

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Denny

2 months ago

I feel like options A and C both make sense because they cover important aspects, but I’m leaning towards A since it mentions the time limit.

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Julian

2 months ago

I remember practicing a question like this where we discussed insurance levels, but I can't recall if they were mandatory in the clause.

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Trina

2 months ago

I think the indemnity clause should definitely include the duties of both parties, but I'm not sure about the monetary limit.

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