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CII IF1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Legal Principles Relevant to Insurance | - Law of tort
|
| Topic 2: Insurance Regulation and Compliance | - Ethics and professional standards - Conduct of business rules and consumer protection - Regulatory framework in the UK (FCA and PRA) |
| Topic 3: Insurance Principles and Practice | - Principles of insurance (insurable interest, utmost good faith, indemnity) - Claims handling and underwriting basics |
| Topic 4: Agency and Insurance Practice | - Principles of agency law - Authority and responsibilities of agents and brokers |
| Topic 5: Insurance Market and Environment | - Key participants and their roles (insurers, brokers, intermediaries) - Structure of the UK insurance market - Types of insurance products and services |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. An owner of a building reduces its sum insured from £1,000.000 lo £500.000 to save premiums. A Tire causes
£300,000 damage to the building. If the building has a reinstatement value of £750,000 and average is applied, how much will the insured receive in settlement?
A) £200.000
B) £150.000
C) £500.000
D) £300.000
2. When completing a proposal form, Tom declares that he has two spent speeding convictions. How, if at all, will the spent convictions affect an underwriter's decision to write the risk?
A) They will not be considered as this is not an underwriting factor in motor insurance risk assessment.
B) They will only be considered if Tom had a further speeding conviction in the last 12 months.
C) They will be classed as relevant information and will affect the premium.
D) They will be ignored in accordance with the provisions of the Rehabilitation of Offenders Act 1974.
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) Low frequency, low seventy.
D) High frequency, low severity.
4. A firm of insurance brokers invite Stuart. an underwriter who handles its account, on a Caribbean cruise with his family. How should Stuart react to this invitation in order to comply with the Chartered Insurance Institute's Code of Ethics?
A) Decline as this is against the Financial Ombudsman Service regulations.
B) Accept on the basis that this is an accepted business practice.
C) Decline to avoid any suggestion he is being compromised.
D) Accept only on the basis that the cost is less than £1.000.
5. A risk control survey shows that premises proposed for insurance are in close proximity to a river with a history of flooding. The underwriter will consider this fact to be a
A) fundamental risk.
B) physical hazard.
C) moral hazard.
D) pure risk.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |






