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CII IF1 : Insurance Legal and Regulatory (IF1) Exam

IF1 real exams

Exam Code: IF1

Exam Name: Insurance Legal and Regulatory (IF1) Exam

Updated: Sep 12, 2026

Q & A: 100 Questions and Answers

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About CII IF1 Exam

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CII IF1 Exam Syllabus Topics:

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

CII Insurance Legal and Regulatory (IF1) Sample Questions:

Question #1
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 cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
C. He must apply to the Chartered Insurance Institute.
D. He must apply to the Prudential Regulation Authority.


Question #2
The principle of indemnity is the

A. obligation of the insurer to provide a maximum sum insured or limit of liability.
B. obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
C. placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
D. placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.


Question #3
In a chain of events, the proximate cause of a loss is always the

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


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. criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
D. disaster recovery procedures to apply if there is a major disaster affecting the insurer.


Question #5
Which professional body specialises in giving its members advice on the long-term management of assets and liabilities?

A. The Chartered Institute of Loss Adjusters.
B. The Lloyd's Market Association.
C. The International Underwriting Association of London.
D. The Institute and Faculty of Actuaries.


Solutions:

Question #1
Correct Answer: C
Question #2
Correct Answer: C
Question #3
Correct Answer: C
Question #4
Correct Answer: B
Question #5
Correct Answer: D

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