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CII IF1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Ethics and Professional Standards3%- Application to insurance scenarios
- CII Code of Ethics
Topic 2: Compulsory Insurance and Legislation3%- Key relevant statutes
- Statutory requirements for compulsory insurance
Topic 3: Nature and Structure of Insurance14%- Purpose and benefits of insurance
- Classification of insurance business
- Participants in the insurance market
- Market structures and distribution channels
Topic 4: Principle of Indemnity7%- Meaning and purpose of indemnity
- Exceptions to indemnity
- Average clause application
- Methods of providing indemnity
Topic 5: Proximate Cause2%- Definition and identification
- Application to claims settlement
Topic 6: Contribution and Subrogation6%- Right of contribution between insurers
- Right of subrogation and its limits
Topic 7: UK Regulatory Framework12%- Insurance Distribution Directive (IDD)
- Role of PRA and FCA
- ICOBS rules and conduct standards
- Authorisation and supervision
Topic 8: Contract and Agency Law9%- Application to insurance contracts
- Law of agency and authority
- Essentials of a valid contract
Topic 9: Risk and Insurance10%- Features of insurable risk
- Concepts of risk and types of risk
- Risk management and control methods
Topic 10: Principle of Insurable Interest5%- When insurable interest must exist
- Definition and legal basis
- Application in different insurance types
Topic 11: Consumer Protection and Dispute Resolution8%- Consumer Insurance (Disclosure and Representations) Act 2012
- Financial Services Compensation Scheme (FSCS)
- Complaints handling procedures
- Financial Ombudsman Service (FOS)
Topic 12: Principle of Utmost Good Faith11%- Remedies for breach of duty
- Duty of disclosure and representation
- Insurance Act 2015 provisions

CII Insurance Legal and Regulatory (IF1) Sample Questions:

1. Who is represented by a loss assessor?

A) An underwriter.
B) A claims handler.
C) A broker.
D) A policyholder.


2. 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.


3. A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?

A) Write to the liquidator to register the debt.
B) Offer a discounted premium payment to the policyholders.
C) Apply for a second payment from the policyholders.
D) Cancel the policies from inception for non-payment.


4. Sara searches on a comparison website for car insurance. She selects the cheapest quotation and pays by credit card for immediate cover. This is known as

A) a Terms of Business Agreement.
B) an offer.
C) unconditional acceptance.
D) conditional acceptance.


5. A claim has arisen which is fully covered under insurer A's policy and insurer B's policy. Insurer A's policy has a sum insured of £30,000 and insurer B's policy has a sum insured of £50,000. What proportion of the claim is insurer B liable for if the principle of contribution applies on a rateable proportion by sum insured basis?

A) Five eighths.
B) Three fifths.
C) Two fifths.
D) Three eighths.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: A
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: A

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