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CII IF1 Exam Overview:
| Certification Vendor: | Chartered Insurance Institute (CII) |
| Exam Name: | Insurance, Legal and Regulatory Principles |
| Exam Number: | IF1 |
| Passing Score: | 70% |
| Exam Price: | Member: £115 / Non-member: £145 (approx. $145 / $183 USD, subject to change) |
| Exam Format: | Multiple Choice Questions (MCQ), Scenario-based |
| Exam Duration: | 120 minutes |
| Related Certifications: | Certificate in Insurance Diploma in Insurance Advanced Diploma in Insurance |
| Real Exam Qty: | 100 |
| Available Languages: | English |
| Certificate Validity Period: | Unit credit does not expire; certification remains valid unless withdrawn |
| Recommended Training: | CII Study Text & RevisionMate CII Revision Courses |
| Exam Registration: | Official CII Registration |
| Sample Questions: | CII IF1 Sample Questions |
| Exam Way: | Computer-based test (CBT) at approved test centres or remote online invigilation |
| Pre Condition: | No formal prerequisites; open to all candidates, recommended for those new to insurance |
| Official Syllabus URL: | https://www.cii.co.uk/learning/qualifications/unit-insurance-legal-and-regulatory-if1/ |
CII IF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Contribution and Subrogation | 6% | - Right of subrogation and its limits - Right of contribution between insurers |
| Topic 2: Principle of Utmost Good Faith | 11% | - Insurance Act 2015 provisions - Remedies for breach of duty - Duty of disclosure and representation |
| Topic 3: Compulsory Insurance and Legislation | 3% | - Key relevant statutes - Statutory requirements for compulsory insurance |
| Topic 4: Contract and Agency Law | 9% | - Essentials of a valid contract - Application to insurance contracts - Law of agency and authority |
| Topic 5: Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Topic 6: Principle of Insurable Interest | 5% | - Definition and legal basis - Application in different insurance types - When insurable interest must exist |
| Topic 7: Risk and Insurance | 10% | - Concepts of risk and types of risk - Features of insurable risk - Risk management and control methods |
| Topic 8: Nature and Structure of Insurance | 14% | - Classification of insurance business - Participants in the insurance market - Purpose and benefits of insurance - Market structures and distribution channels |
| Topic 9: Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Topic 10: Consumer Protection and Dispute Resolution | 8% | - Financial Ombudsman Service (FOS) - Complaints handling procedures - Financial Services Compensation Scheme (FSCS) - Consumer Insurance (Disclosure and Representations) Act 2012 |
| Topic 11: Principle of Indemnity | 7% | - Exceptions to indemnity - Average clause application - Meaning and purpose of indemnity - Methods of providing indemnity |
| Topic 12: UK Regulatory Framework | 12% | - Role of PRA and FCA - ICOBS rules and conduct standards - Authorisation and supervision - Insurance Distribution Directive (IDD) |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. Why is effective risk management important to an insurer?
A) It always reduces costs.
B) It increases the insurer's capacity.
C) It increases premium income.
D) It helps to reduce a company's loss exposure.
2. Under the Consumer Rights Act 2015. a clause in a household insurance policy may be considered unfair if it
A) causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
B) imposes unreasonable obligations on the insurer in terms of costs or expenses that must be paid in addition to the amount of any loss.
C) discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
D) allows any party other than the insured to enforce the insurer's obligations under the policy.
3. What is the basis of settlement under a new for old insurance policy if a television is stolen?
A) The original cost, less wear and tear.
B) The replacement cost in full.
C) The original cost in full.
D) The replacement cost, less wear and tear.
4. Bye-laws are passed at the Lloyd's Market by the
A) Lloyds Managing Agent.
B) Lloyd's Market Association.
C) Council of Lloyd's.
D) Corporation of Lloyd's.
5. Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the
A) Association of British Insurers.
B) Financial Ombudsman Service.
C) Financial Services Compensation Scheme.
D) European Union.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: D |
By Elroy
