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CII IF1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Insurance Market and Environment | - Types of insurance products and services - Structure of the UK insurance market - Key participants and their roles (insurers, brokers, intermediaries) |
| Topic 2: Legal Principles Relevant to Insurance | - Law of tort
|
| Topic 3: Insurance Principles and Practice | - Principles of insurance (insurable interest, utmost good faith, indemnity) - Claims handling and underwriting basics |
| Topic 4: Insurance Regulation and Compliance | - Regulatory framework in the UK (FCA and PRA) - Conduct of business rules and consumer protection - Ethics and professional standards |
| Topic 5: Agency and Insurance Practice | - Authority and responsibilities of agents and brokers - Principles of agency law |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?
A) An excess.
B) Brokerage.
C) Wear and tear.
D) Loss of interest.
2. The purpose of Insurance Premium Tax is to
A) raise revenue for the Government.
B) pay for flood defences.
C) reimburse for claims of insolvent insurers
D) fund the Association of British Insurers.
3. How would an insurer's portfolio of motor claims be shown in terms of frequency and severity?
A) Low frequency, high seventy.
B) High frequency, high seventy.
C) High frequency, low severity.
D) Low frequency, low seventy.
4. A retail customer CANNOT buy insurance directly from which type of insurer?
A) A mutual insurer.
B) A direct insurer.
C) A composite insurer.
D) A captive insurer.
5. When an insurer is aware that the total value of stock is more than the sum insured and issues a policy on this basis, this is known as
A) a new for old policy.
B) an indemnity policy.
C) a real statement.
D) a first loss policy.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: D |



