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CII IF1 Exam Syllabus Topics:

SectionWeightObjectives
Ethics and Professional Standards3%- CII Code of Ethics
- Application to insurance scenarios
Contract and Agency Law9%- Essentials of a valid contract
- Application to insurance contracts
- Law of agency and authority
Nature and Structure of Insurance14%- Participants in the insurance market
- Purpose and benefits of insurance
- Classification of insurance business
- Market structures and distribution channels
Principle of Insurable Interest5%- When insurable interest must exist
- Definition and legal basis
- Application in different insurance types
Principle of Indemnity7%- Average clause application
- Exceptions to indemnity
- Methods of providing indemnity
- Meaning and purpose of indemnity
Proximate Cause2%- Application to claims settlement
- Definition and identification
Consumer Protection and Dispute Resolution8%- Complaints handling procedures
- Financial Services Compensation Scheme (FSCS)
- Financial Ombudsman Service (FOS)
- Consumer Insurance (Disclosure and Representations) Act 2012
Contribution and Subrogation6%- Right of subrogation and its limits
- Right of contribution between insurers
UK Regulatory Framework12%- Authorisation and supervision
- ICOBS rules and conduct standards
- Role of PRA and FCA
- Insurance Distribution Directive (IDD)
Risk and Insurance10%- Concepts of risk and types of risk
- Features of insurable risk
- Risk management and control methods
Compulsory Insurance and Legislation3%- Statutory requirements for compulsory insurance
- Key relevant statutes
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. How would an employee benefit directly from her employer's business interruption insurance if its factory was forced to close temporarily due to flood damage?

A) By continuation of her wages.
B) By payment of a redundancy lump sum.
C) By compensation for loss of bonus.
D) By payment of an early retirement pension.


2. What type of organisation is the British Insurance Brokers' Association?

A) A specialist regulator.
B) A public limited company.
C) An educational body.
D) A trade body.


3. The main function of an insurance broker is to

A) provide independent advice to clients.
B) act as the agent of the insurer.
C) negotiate claims.
D) introduce business lo a particular insurer.


4. Sunita suffers a loss and makes a claim under her household contents insurance policy. When must insurable interest exist for her claim to be valid?

A) At policy inception only.
B) At policy inception and at the time of the loss.
C) At the time of the loss only.
D) At the time of the proposal.


5. Self-insurance arises when a

A) number of insurers agree to collectively insure a particular risk in agreed proportions.
B) policyholder decides to insure proportions of his property with different insurers.
C) company decides to set aside a fund to pay losses that may occur.
D) policyholder finds that he has inadvertently taken out more than one policy covering the same risk.


Solutions:

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

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