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CII IF1 Exam Syllabus Topics:

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

CII Insurance Legal and Regulatory (IF1) Sample Questions:

1. In a chain of events, the proximate cause of a loss is always the

A) dominant event leading to the loss.
B) only event which is not excluded by the terms of the policy.
C) last event before the loss occurs.
D) only event contributing towards the loss.


2. The Financial Services Compensation Scheme was established to help policyholders in the event of

A) the financial failure of an insurance company.
B) fraud perpetrated by an insurance broker.
C) the repudiation of liability by an insurer.
D) unreasonable policy terms and conditions.


3. Lloyd's is known as a subscription market because

A) a number of syndicates accept a share of the same risk.
B) a fee must be paid.
C) if an insurer writes a particular class, he is expected to subscribe to the majority of these risks.
D) the underwriter assigns his signature individually to each risk.


4. Who cedes business to a reinsurer?

A) The insurer.
B) The assessor.
C) The agent.
D) The insured.


5. What are the other key components of risk apart from uncertainty?

A) The level of risk, peril and hazard.
B) Low severity losses and low frequency losses.
C) Financial losses and speculation.
D) Financial losses.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A
Question # 3
Answer: A
Question # 4
Answer: A
Question # 5
Answer: A

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