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CII IF1 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Legal Principles Relevant to Insurance | - Law of contract
|
| Topic 2: Agency and Insurance Practice | - Principles of agency law - Authority and responsibilities of agents and brokers |
| Topic 3: Insurance Regulation and Compliance | - Ethics and professional standards - Regulatory framework in the UK (FCA and PRA) - Conduct of business rules and consumer protection |
| Topic 4: Insurance Market and Environment | - Key participants and their roles (insurers, brokers, intermediaries) - Structure of the UK insurance market - Types of insurance products and services |
| Topic 5: Insurance Principles and Practice | - Claims handling and underwriting basics - Principles of insurance (insurable interest, utmost good faith, indemnity) |
CII Insurance Legal and Regulatory (IF1) Sample Questions:
1. John wishes to insure his friend's house. Why would an insurer refuse to provide a quotation?
A) He does not live in the house.
B) His name is not on the mortgage.
C) He does not have any insurable interest.
D) He does not have any subrogation rights.
2. In order for a contract to be legally enforceable, what further action is required after offer and acceptance?
A) Witnessing by a third party.
B) Exchange of consideration between the two parties.
C) Provision of written terms and conditions.
D) Delivery of goods or services concerned.
3. Which principle of insurance prevents a member of the public from taking out an insurance policy on the life of a celebrity in the hope of receiving a windfall on the celebrity's death?
A) Insurable interest.
B) Indemnity.
C) Good faith.
D) Proximate cause.
4. 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) £1,000
B) £3,000
C) £2,000
D) £1,500
5. An agent, acting outside the terms of her agency agreement, binds her principal to a contract with a third party who has reason to believe that the agent can act in that capacity. On what basis, if al all, is the principal bound by the agent's actions?
A) Not at all.
B) Apparent authority.
C) Consent.
D) Necessity.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: A | Question # 5 Answer: B |



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