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CII IF1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Principle of Indemnity | 7% | - Average clause application - Meaning and purpose of indemnity - Methods of providing indemnity - Exceptions to indemnity |
| Consumer Protection and Dispute Resolution | 8% | - Financial Services Compensation Scheme (FSCS) - Financial Ombudsman Service (FOS) - Consumer Insurance (Disclosure and Representations) Act 2012 - Complaints handling procedures |
| UK Regulatory Framework | 12% | - Insurance Distribution Directive (IDD) - Authorisation and supervision - Role of PRA and FCA - ICOBS rules and conduct standards |
| 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 |
| Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Risk and Insurance | 10% | - Concepts of risk and types of risk - Features of insurable risk - Risk management and control methods |
| Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Principle of Insurable Interest | 5% | - When insurable interest must exist - Application in different insurance types - Definition and legal basis |
| Contract and Agency Law | 9% | - Application to insurance contracts - Essentials of a valid contract - Law of agency and authority |
| Principle of Utmost Good Faith | 11% | - Remedies for breach of duty - Insurance Act 2015 provisions - Duty of disclosure and representation |
| Nature and Structure of Insurance | 14% | - Participants in the insurance market - Market structures and distribution channels - Purpose and benefits of insurance - Classification of insurance business |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. 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 a spent conviction.
C) It represents a moral hazard.
D) It is information that would not influence an underwriter.
2. An intermediary needs to place a large properly risk, however the insurance company can only write 25% of the risk. What type of insurance arrangement would the intermediary require to complete the risk?
A) Self-insurance.
B) Reinsurance.
C) Dual insurance.
D) Coinsurance.
3. In a chain of events, the proximate cause of a loss is always the
A) dominant event leading to the loss.
B) only event contributing towards the loss.
C) last event before the loss occurs.
D) only event which is not excluded by the terms of the policy.
4. The capital requirements of insurers and intermediaries are set out by
A) Data Protection legislation.
B) Money Laundering Regulations.
C) Proceeds of Crime Act 2002.
D) Prudential Regulation Authority rules.
5. A loss adjuster normally acts on behalf of the
A) Financial Ombudsman Service.
B) insurer.
C) Financial Services Compensation Scheme.
D) insured.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: B |
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