CII Insurance Legal and Regulatory (IF1) : IF1

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

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About CII IF1 Exam

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CII IF1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Insurance Regulation and Compliance- Regulatory framework in the UK (FCA and PRA)
- Ethics and professional standards
- Conduct of business rules and consumer protection
Topic 2: Legal Principles Relevant to Insurance- Law of contract
  • 1. Terms of contract and breach
    • 2. Formation of contracts
      - Law of tort
      • 1. Duty of care and liability
        • 2. Negligence principles
          Topic 3: Insurance Principles and Practice- Claims handling and underwriting basics
          - Principles of insurance (insurable interest, utmost good faith, indemnity)
          Topic 4: Insurance Market and Environment- Types of insurance products and services
          - Structure of the UK insurance market
          - Key participants and their roles (insurers, brokers, intermediaries)
          Topic 5: Agency and Insurance Practice- Principles of agency law
          - Authority and responsibilities of agents and brokers

          CII Insurance Legal and Regulatory (IF1) Sample Questions:

          Question #1

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

          • A. Low severity losses and low frequency losses.
          • B. The level of risk, peril and hazard.
          • C. Financial losses.
          • D. Financial losses and speculation.
          Answer: B
          Question #2

          If a firm is said to be risk averse, this means that it

          • A. undertakes its own risk management research.
          • B. arranges insurance protection wherever possible.
          • C. carries its own risk wherever possible.
          • D. tenders its insurance needs to the market.
          Answer: C
          Question #3

          A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?

          • A. In all circumstances.
          • B. Only if the records include details of race.
          • C. Only if the records include dates of birth.
          • D. In no circumstances.
          Answer: A
          Question #4

          Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?

          • A. Contra proferentem.
          • B. Subrogation.
          • C. Privity of contract.
          • D. Good faith.
          Answer: C
          Question #5

          Under the provisions of the Financial Services Act 2012. what action, if any, can the regulator take against a firm that has committed money laundering offences?

          • A. Criminal prosecution.
          • B. Civil proceedings.
          • C. Arbitration.
          • D. No action can be taken.
          Answer: A

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