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CII IF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk and Insurance | 10% | - Risk management and control methods - Features of insurable risk - Concepts of risk and types of risk |
| Topic 2: Principle of Insurable Interest | 5% | - When insurable interest must exist - Application in different insurance types - Definition and legal basis |
| Topic 3: Nature and Structure of Insurance | 14% | - Market structures and distribution channels - Classification of insurance business - Participants in the insurance market - Purpose and benefits of insurance |
| Topic 4: Principle of Utmost Good Faith | 11% | - Remedies for breach of duty - Insurance Act 2015 provisions - Duty of disclosure and representation |
| Topic 5: Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Topic 6: Proximate Cause | 2% | - Application to claims settlement - Definition and identification |
| Topic 7: Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Topic 8: Ethics and Professional Standards | 3% | - CII Code of Ethics - Application to insurance scenarios |
| Topic 9: Principle of Indemnity | 7% | - Exceptions to indemnity - Meaning and purpose of indemnity - Average clause application - Methods of providing indemnity |
| Topic 10: Consumer Protection and Dispute Resolution | 8% | - Financial Services Compensation Scheme (FSCS) - Complaints handling procedures - Financial Ombudsman Service (FOS) - Consumer Insurance (Disclosure and Representations) Act 2012 |
| Topic 11: UK Regulatory Framework | 12% | - Insurance Distribution Directive (IDD) - Authorisation and supervision - ICOBS rules and conduct standards - Role of PRA and FCA |
| Topic 12: Contract and Agency Law | 9% | - Essentials of a valid contract - Application to insurance contracts - Law of agency and authority |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. John has a whole of life policy and has recently been diagnosed with cancer. When, if at all. must he disclose this to his insurer?
A) At the date of the next premium payment.
B) Immediately, irrespective of prognosis.
C) He does not need to disclose this.
D) Immediately, but only if the diagnosis is terminal.
2. Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the
A) Financial Ombudsman Service.
B) European Union.
C) Financial Services Compensation Scheme.
D) Association of British Insurers.
3. How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
A) Subrogation rights only apply under a theft policy.
B) Subrogation rights do not apply under either policy.
C) Subrogation rights only apply under a personal accident policy.
D) Subrogation rights apply under both policies.
4. A storm blew down the wall of a limber building. The failing wall broke electrical wiring, which short-circuited and the resultant sparks caused a fire. The lire brigade used water to put out the fire and the water caused damage to the unburnt contents. What is the proximate cause of the damage to the unburnt contents?
A) The storm.
B) The water damage.
C) The falling wall.
D) The fire.
5. If a firm is said to be risk averse, this means that it
A) undertakes its own risk management research.
B) arranges insurance protection wherever possible.
C) carries its own risk wherever possible.
D) tenders its insurance needs to the market.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: C |








