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CII IF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: UK Regulatory Framework | 12% | - Insurance Distribution Directive (IDD) - Authorisation and supervision - ICOBS rules and conduct standards - Role of PRA and FCA |
| Topic 2: Principle of Indemnity | 7% | - Exceptions to indemnity - Meaning and purpose of indemnity - Methods of providing indemnity - Average clause application |
| Topic 3: Principle of Utmost Good Faith | 11% | - Duty of disclosure and representation - Remedies for breach of duty - Insurance Act 2015 provisions |
| Topic 4: Nature and Structure of Insurance | 14% | - Market structures and distribution channels - Classification of insurance business - Purpose and benefits of insurance - Participants in the insurance market |
| Topic 5: Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Topic 6: Compulsory Insurance and Legislation | 3% | - Key relevant statutes - Statutory requirements for compulsory insurance |
| Topic 7: Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Topic 8: Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Topic 9: Principle of Insurable Interest | 5% | - When insurable interest must exist - Definition and legal basis - Application in different insurance types |
| Topic 10: Consumer Protection and Dispute Resolution | 8% | - Complaints handling procedures - Consumer Insurance (Disclosure and Representations) Act 2012 - Financial Services Compensation Scheme (FSCS) - Financial Ombudsman Service (FOS) |
| Topic 11: Contract and Agency Law | 9% | - Application to insurance contracts - Essentials of a valid contract - Law of agency and authority |
| Topic 12: Risk and Insurance | 10% | - Features of insurable risk - Concepts of risk and types of risk - Risk management and control methods |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. 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 to avoid any suggestion he is being compromised.
B) Accept only on the basis that the cost is less than £1.000.
C) Decline as this is against the Financial Ombudsman Service regulations.
D) Accept on the basis that this is an accepted business practice.
2. What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?
A) Insurable interest.
B) Delegated authority.
C) Vicarious liability.
D) Risk indemnity.
3. The Principles for Business slate that all customers should be treated
A) with due respect.
B) to a minimum standard.
C) equally.
D) fairly.
4. A policyholder achieves peace of mind when insuring his car by
A) eliminating the risk of loss.
B) preventing the chance of a loss occurring.
C) reducing the chance of a loss occurring.
D) transferring the risk to the insurer.
5. The purpose of the EU solvency requirements for insurers and intermediaries is to
A) provide authorisation to transact insurance business.
B) introduce monitoring procedures by the Prudential Regulation Authority.
C) create a standard format for the presentation of accounting data.
D) strengthen the financial security of the insurer or intermediary.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: C |


