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CII IF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Nature and Structure of Insurance | 14% | - Participants in the insurance market - Classification of insurance business - Purpose and benefits of insurance - Market structures and distribution channels |
| Principle of Insurable Interest | 5% | - Definition and legal basis - When insurable interest must exist - Application in different insurance types |
| Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Consumer Protection and Dispute Resolution | 8% | - Complaints handling procedures - Financial Ombudsman Service (FOS) - Consumer Insurance (Disclosure and Representations) Act 2012 - Financial Services Compensation Scheme (FSCS) |
| Contract and Agency Law | 9% | - Application to insurance contracts - Law of agency and authority - Essentials of a valid contract |
| Proximate Cause | 2% | - Application to claims settlement - Definition and identification |
| Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Compulsory Insurance and Legislation | 3% | - Key relevant statutes - Statutory requirements for compulsory insurance |
| UK Regulatory Framework | 12% | - ICOBS rules and conduct standards - Authorisation and supervision - Insurance Distribution Directive (IDD) - Role of PRA and FCA |
| Risk and Insurance | 10% | - Features of insurable risk - Risk management and control methods - Concepts of risk and types of risk |
| Principle of Utmost Good Faith | 11% | - Duty of disclosure and representation - Insurance Act 2015 provisions - Remedies for breach of duty |
| Principle of Indemnity | 7% | - Average clause application - Exceptions to indemnity - Meaning and purpose of indemnity - Methods of providing indemnity |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. The capital requirements of insurers and intermediaries are set out by
A) Data Protection legislation.
B) Proceeds of Crime Act 2002.
C) Money Laundering Regulations.
D) Prudential Regulation Authority rules.
2. John and his wife arrange a household contents insurance policy in joint names with insurer A for a sum insured of £10,000. His wife arranges a second policy on the same basis with insurer B for a sum insured of
£20,000. Both policies have identical terms and conditions. What is insurer A's liability if a valid claim of
£3,000 is subsequently made?
A) £2,000
B) £3,000
C) £1,000
D) £1,500
3. A Terms of Business Agreement between an insurer and an intermediary sets out the
A) disaster recovery procedures to apply if there is a major disaster affecting the insurer.
B) criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
C) agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
D) framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
4. The purpose of Insurance Premium Tax is to
A) fund the Association of British Insurers.
B) raise revenue for the Government.
C) reimburse for claims of insolvent insurers
D) pay for flood defences.
5. Peter currently has no penalty points on his driving licence, although he was convicted of a minor motoring offence eight years ago. Why does Peter NOT need to disclose this to his motor insurer?
A) It represents a physical hazard.
B) It is information that would not influence an underwriter.
C) It is a spent conviction.
D) It represents a moral hazard.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: D | Question # 4 Answer: B | Question # 5 Answer: C |
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