CII IF1 Exam Questions : Insurance Legal and Regulatory (IF1) Exam

  • Exam Code: IF1
  • Exam Name: Insurance Legal and Regulatory (IF1) Exam
  • Updated: Sep 08, 2026
  • Q&As: 100 Questions and Answers

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CII IF1 Exam Syllabus Topics:

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

CII Insurance Legal and Regulatory (IF1) Sample Questions:

Question #1

For which professional is professional indemnity insurance compulsory by statute?

  • A. A chartered surveyor. .
  • B. A loss adjuster,
  • C. A solicitor.
  • D. A loss assessor.
Answer: C
Question #2

A storm blew down the wall of a limber building. The failing wall broke electrical wiring, which short-circuited and the resultant sparks caused a fire. The lire brigade used water to put out the fire and the water caused damage to the unburnt contents. What is the proximate cause of the damage to the unburnt contents?

  • A. The storm.
  • B. The water damage.
  • C. The falling wall.
  • D. The fire.
Answer: A
Question #3

In order for a contract to be legally enforceable, what further action is required after offer and acceptance?

  • A. Provision of written terms and conditions.
  • B. Exchange of consideration between the two parties.
  • C. Delivery of goods or services concerned.
  • D. Witnessing by a third party.
Answer: B
Question #4

A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?

  • A. Write to the liquidator to register the debt.
  • B. Offer a discounted premium payment to the policyholders.
  • C. Apply for a second payment from the policyholders.
  • D. Cancel the policies from inception for non-payment.
Answer: A
Question #5

A firm of insurance brokers invite Stuart. an underwriter who handles its account, on a Caribbean cruise with his family. How should Stuart react to this invitation in order to comply with the Chartered Insurance Institute's Code of Ethics?

  • A. Accept only on the basis that the cost is less than £1.000.
  • B. Decline to avoid any suggestion he is being compromised.
  • C. Accept on the basis that this is an accepted business practice.
  • D. Decline as this is against the Financial Ombudsman Service regulations.
Answer: B

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