CII IF1 : Insurance Legal and Regulatory (IF1) Exam

  • Exam Code: IF1
  • Exam Name: Insurance Legal and Regulatory (IF1) Exam
  • Updated: Sep 06, 2026     Q & A: 100 Questions and Answers

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CII IF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Agency and Insurance Practice- Principles of agency law
- Authority and responsibilities of agents and brokers
Topic 2: Insurance Regulation and Compliance- Regulatory framework in the UK (FCA and PRA)
- Conduct of business rules and consumer protection
- Ethics and professional standards
Topic 3: Insurance Market and Environment- Structure of the UK insurance market
- Key participants and their roles (insurers, brokers, intermediaries)
- Types of insurance products and services
Topic 4: Insurance Principles and Practice- Principles of insurance (insurable interest, utmost good faith, indemnity)
- Claims handling and underwriting basics
Topic 5: Legal Principles Relevant to Insurance- Law of tort
  • 1. Duty of care and liability
    • 2. Negligence principles
      - Law of contract
      • 1. Terms of contract and breach
        • 2. Formation of contracts

          CII Insurance Legal and Regulatory (IF1) Sample Questions:

          Question #1

          What is the current rate of Insurance Premium Tax for a motor insurance policy?

          • A. 9.5%
          • B. 10%
          • C. 20%
          • D. 12%
          Answer: D
          Question #2

          Why is effective risk management important to an insurer?

          • A. It increases the insurer's capacity.
          • B. It helps to reduce a company's loss exposure.
          • C. It increases premium income.
          • D. It always reduces costs.
          Answer: B
          Question #3

          How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?

          • A. Subrogation rights apply under both policies.
          • B. Subrogation rights do not apply under either policy.
          • C. Subrogation rights only apply under a personal accident policy.
          • D. Subrogation rights only apply under a theft policy.
          Answer: D
          Question #4

          Which distribution channel for household insurance is typically characterised by high advertising and promotional costs, with no payment of commission?

          • A. Lloyd's.
          • B. Appointed representatives.
          • C. Direct insurers.
          • D. Independent brokers.
          Answer: C
          Question #5

          It is important to ensure the fair treatment of customers in order to comply with rules set by the

          • A. British Insurance Brokers' Association.
          • B. Association of British Insurers.
          • C. Financial Conduct Authority.
          • D. Chartered Insurance Institute.
          Answer: C

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