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CII IF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Principle of Insurable Interest | 5% | - Definition and legal basis - Application in different insurance types - When insurable interest must exist |
| Topic 2: Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Topic 3: UK Regulatory Framework | 12% | - Authorisation and supervision - Role of PRA and FCA - ICOBS rules and conduct standards - Insurance Distribution Directive (IDD) |
| Topic 4: Risk and Insurance | 10% | - Risk management and control methods - Concepts of risk and types of risk - Features of insurable risk |
| Topic 5: Compulsory Insurance and Legislation | 3% | - Key relevant statutes - Statutory requirements for compulsory insurance |
| Topic 6: Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Topic 7: Principle of Indemnity | 7% | - Meaning and purpose of indemnity - Exceptions to indemnity - Methods of providing indemnity - Average clause application |
| Topic 8: Principle of Utmost Good Faith | 11% | - Insurance Act 2015 provisions - Duty of disclosure and representation - Remedies for breach of duty |
| Topic 9: Nature and Structure of Insurance | 14% | - Purpose and benefits of insurance - Classification of insurance business - Market structures and distribution channels - Participants in the insurance market |
| Topic 10: Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Topic 11: Contract and Agency Law | 9% | - Law of agency and authority - Essentials of a valid contract - Application to insurance contracts |
| Topic 12: Consumer Protection and Dispute Resolution | 8% | - Financial Ombudsman Service (FOS) - Financial Services Compensation Scheme (FSCS) - Complaints handling procedures - Consumer Insurance (Disclosure and Representations) Act 2012 |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
Question #1
Michael, an insurance company employee, strongly suspects that a recent transaction involved money laundering but decides NOT to report his suspicions to anyone. How is this treated under the current Money Laundering Regulations?
A. It is a criminal offence.
B. It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.
C. It is a disciplinary offence under the Banking Code.
D. It is a civil offence.
Question #2
Who cedes business to a reinsurer?
A. The insurer.
B. The agent.
C. The insured.
D. The assessor.
Question #3
Who is represented by a loss assessor?
A. A policyholder.
B. An underwriter.
C. A broker.
D. A claims handler.
Question #4
When motor insurance is purchased directly with an insurer, what is usually the main disadvantage to the policyholder in the event of a claim compared to purchasing indirectly through a different marketing channel?
A. There is no intermediary to provide assistance.
B. A courtesy car is not available.
C. The risk of losing a no claims discount is greater.
D. The policy excess is higher.
Question #5
The Financial Ombudsman Service will make a ruling on a dispute between
A. an insurance broker and an insurer.
B. an insurer and a reinsurer.
C. a private individual and an insurer.
D. a third party and the insurer against whom he is making a liability claim.
Solutions:
| Question #1 Correct Answer: B | Question #2 Correct Answer: A | Question #3 Correct Answer: A | Question #4 Correct Answer: A | Question #5 Correct Answer: C |


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