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CII IF1 exam : Insurance Legal and Regulatory (IF1) Exam

IF1 Exam Simulator
  • Exam Code: IF1
  • Exam Name: Insurance Legal and Regulatory (IF1) Exam
  • Updated: Sep 15, 2026
  • Q & A: 100 Questions and Answers
  • CII IF1 Q&A - in .pdf

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CII IF1 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Consumer Protection and Dispute Resolution8%- Complaints handling procedures
- Financial Ombudsman Service (FOS)
- Financial Services Compensation Scheme (FSCS)
- Consumer Insurance (Disclosure and Representations) Act 2012
Topic 2: Proximate Cause2%- Definition and identification
- Application to claims settlement
Topic 3: Risk and Insurance10%- Risk management and control methods
- Features of insurable risk
- Concepts of risk and types of risk
Topic 4: Compulsory Insurance and Legislation3%- Statutory requirements for compulsory insurance
- Key relevant statutes
Topic 5: Principle of Insurable Interest5%- Definition and legal basis
- When insurable interest must exist
- Application in different insurance types
Topic 6: Contribution and Subrogation6%- Right of contribution between insurers
- Right of subrogation and its limits
Topic 7: Nature and Structure of Insurance14%- Purpose and benefits of insurance
- Participants in the insurance market
- Classification of insurance business
- Market structures and distribution channels
Topic 8: Principle of Utmost Good Faith11%- Duty of disclosure and representation
- Remedies for breach of duty
- Insurance Act 2015 provisions
Topic 9: Principle of Indemnity7%- Meaning and purpose of indemnity
- Average clause application
- Methods of providing indemnity
- Exceptions to indemnity
Topic 10: UK Regulatory Framework12%- Authorisation and supervision
- Insurance Distribution Directive (IDD)
- Role of PRA and FCA
- ICOBS rules and conduct standards
Topic 11: Contract and Agency Law9%- Application to insurance contracts
- Law of agency and authority
- Essentials of a valid contract
Topic 12: Ethics and Professional Standards3%- Application to insurance scenarios
- CII Code of Ethics

CII Insurance Legal and Regulatory (IF1) Sample Questions:

Question #1

Barbara owns a factory employing 20 people. What insurance is she required to hold by law?

  • A. Employers' liability insurance.
  • B. Products liability insurance.
  • C. Professional indemnity insurance.
  • D. Public liability insurance.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

A survey of a car repairers reveals a spray booth exists by an unguarded paraffin space beater. Also, a day's supply of paint is kept within the building and waste is removed daily from a metal bin. What will the underwriter perceive as the main physical hazard?

  • A. The unguarded paraffin space heater.
  • B. The waste bin.
  • C. The spray booth.
  • D. The paint.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?

  • A. To anyone able to fulfil the duties.
  • B. To suitably experienced individuals only.
  • C. To suitably qualified individuals only.
  • D. The agent cannot delegate her responsibility.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

Bye-laws are passed at the Lloyd's Market by the

  • A. Corporation of Lloyd's.
  • B. Lloyd's Market Association.
  • C. Council of Lloyd's.
  • D. Lloyds Managing Agent.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #5

A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?

  • A. Offer a discounted premium payment to the policyholders.
  • B. Cancel the policies from inception for non-payment.
  • C. Write to the liquidator to register the debt.
  • D. Apply for a second payment from the policyholders.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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