Updated: Jul 20, 2026
No. of Questions: 100 Questions & Answers with Testing Engine
Download Limit: Unlimited
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| Certification Vendor: | Chartered Insurance Institute (CII) |
| Exam Name: | Insurance, Legal and Regulatory Principles |
| Exam Number: | IF1 |
| Exam Price: | Member: £115 / Non-member: £145 (approx. $145 / $183 USD, subject to change) |
| Certificate Validity Period: | Unit credit does not expire; certification remains valid unless withdrawn |
| Related Certifications: | Certificate in Insurance Diploma in Insurance Advanced Diploma in Insurance |
| Available Languages: | English |
| Passing Score: | 70% |
| Exam Format: | Multiple Choice Questions (MCQ), Scenario-based |
| Real Exam Qty: | 100 |
| Exam Duration: | 120 minutes |
| Recommended Training: | CII Revision Courses CII Study Text & RevisionMate |
| Exam Registration: | Official CII Registration |
| Sample Questions: | CII IF1 Sample Questions |
| Exam Way: | Computer-based test (CBT) at approved test centres or remote online invigilation |
| Pre Condition: | No formal prerequisites; open to all candidates, recommended for those new to insurance |
| Official Syllabus URL: | https://www.cii.co.uk/learning/qualifications/unit-insurance-legal-and-regulatory-if1/ |
| Section | Weight | Objectives |
|---|---|---|
| UK Regulatory Framework | 12% | - Insurance Distribution Directive (IDD) - Authorisation and supervision - ICOBS rules and conduct standards - Role of PRA and FCA |
| Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Nature and Structure of Insurance | 14% | - Purpose and benefits of insurance - Participants in the insurance market - Market structures and distribution channels - Classification of insurance business |
| Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Principle of Utmost Good Faith | 11% | - Remedies for breach of duty - Insurance Act 2015 provisions - Duty of disclosure and representation |
| Contract and Agency Law | 9% | - Essentials of a valid contract - Law of agency and authority - Application to insurance contracts |
| Principle of Indemnity | 7% | - Exceptions to indemnity - Methods of providing indemnity - Meaning and purpose of indemnity - Average clause application |
| Risk and Insurance | 10% | - Features of insurable risk - Risk management and control methods - Concepts of risk and types of risk |
| Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Principle of Insurable Interest | 5% | - Definition and legal basis - When insurable interest must exist - Application in different insurance types |
| Consumer Protection and Dispute Resolution | 8% | - Financial Ombudsman Service (FOS) - Financial Services Compensation Scheme (FSCS) - Complaints handling procedures - Consumer Insurance (Disclosure and Representations) Act 2012 |
1. The main function of an insurance broker is to
A) provide independent advice to clients.
B) negotiate claims.
C) introduce business lo a particular insurer.
D) act as the agent of the insurer.
2. If an insurer invokes the cancellation clause to cancel a policy mid-year due to a change in the risk, how much of the premium, if anything, is normally returned to the policyholder?
A) The full year's premium.
B) The full year's premium less a fixed nominal charge.
C) None of the premium.
D) A pro rata amount.
3. A policyholder achieves peace of mind when insuring his car by
A) transferring the risk to the insurer.
B) eliminating the risk of loss.
C) reducing the chance of a loss occurring.
D) preventing the chance of a loss occurring.
4. In accordance with the principle of good faith, which facts must a potential policyholder disclose to the insurer when applying for insurance?
A) Only those facts considered likely to reduce the cost of cover
B) Any facts which are in the public domain.
C) Any facts of law.
D) Any facts which are considered material to the risk.
5. How does insurable interest arise, if at all. when an insurer arranges reinsurance?
A) The policyholder is considered to have assigned the insurable interest to the insurer.
B) Insurable interest is created by statute.
C) Insurable interest does not arise.
D) The insurer is considered to have insurable interest by virtue of its liability to pay claims.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: D |
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