CII IF1 : Insurance Legal and Regulatory (IF1) Exam

  • Exam Code: IF1
  • Exam Name: Insurance Legal and Regulatory (IF1) Exam
  • Updated: Sep 10, 2026   Q&As: 100 Questions and Answers

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CII IF1 Exam Syllabus Topics:
SectionWeightObjectives
Topic 1: Risk and Insurance10%- Features of insurable risk
- Concepts of risk and types of risk
- Risk management and control methods
Topic 2: Contract and Agency Law9%- Law of agency and authority
- Essentials of a valid contract
- Application to insurance contracts
Topic 3: UK Regulatory Framework12%- ICOBS rules and conduct standards
- Role of PRA and FCA
- Insurance Distribution Directive (IDD)
- Authorisation and supervision
Topic 4: Compulsory Insurance and Legislation3%- Statutory requirements for compulsory insurance
- Key relevant statutes
Topic 5: Proximate Cause2%- Application to claims settlement
- Definition and identification
Topic 6: Ethics and Professional Standards3%- Application to insurance scenarios
- CII Code of Ethics
Topic 7: Principle of Indemnity7%- Average clause application
- Meaning and purpose of indemnity
- Exceptions to indemnity
- Methods of providing indemnity
Topic 8: Contribution and Subrogation6%- Right of subrogation and its limits
- Right of contribution between insurers
Topic 9: Principle of Utmost Good Faith11%- Insurance Act 2015 provisions
- Remedies for breach of duty
- Duty of disclosure and representation
Topic 10: Nature and Structure of Insurance14%- Classification of insurance business
- Participants in the insurance market
- Market structures and distribution channels
- Purpose and benefits of insurance
Topic 11: Consumer Protection and Dispute Resolution8%- Financial Ombudsman Service (FOS)
- Financial Services Compensation Scheme (FSCS)
- Consumer Insurance (Disclosure and Representations) Act 2012
- Complaints handling procedures
Topic 12: Principle of Insurable Interest5%- When insurable interest must exist
- Application in different insurance types
- Definition and legal basis
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. 12%
  • B. 20%
  • C. 9.5%
  • D. 10%
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

An insurance company has employed an individual from a rival firm to carry out a similar job. At which stage would the regulatory requirements for retaining training and competence records first apply to the new employee, if at all?

  • A. Within 18 months of employment.
  • B. From the initial interview.
  • C. It would not apply, as the employee is already fully competent.
  • D. When the employee first has contact with members of the public.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #3

Joe is a broker who has become a Fellow of the Chattered Insurance Institute. If he would like to use the title Chartered Insurance Broker, what must he do. if anything?

  • A. He must apply to the British Insurance Brokers' Association.
  • B. He must apply to the Prudential Regulation Authority.
  • C. He must apply to the Chartered Insurance Institute.
  • D. He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

A Terms of Business Agreement between an insurer and an intermediary sets out the

  • A. agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
  • B. framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
  • C. disaster recovery procedures to apply if there is a major disaster affecting the insurer.
  • D. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #5

The main purpose of the fair treatment of customers initiative is to

  • A. apply fixed times for responding to claims and complaints.
  • B. build consumer confidence in the financial services industry.
  • C. make firms more competitive.
  • D. ensure all firms have a similar service standard.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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