CII IF1 : Insurance Legal and Regulatory (IF1) Exam

IF1 pass collection

Exam Code: IF1

Exam Name: Insurance Legal and Regulatory (IF1) Exam

Updated: Jul 31, 2026

Q & A: 100 Questions and Answers

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CII IF1 Exam Syllabus Topics:

SectionObjectives
Professional and Ethical Standards- Understand the CII Code of Ethics and apply principles to non-complex scenarios
Regulation and Legal Requirements- Understand main regulatory and legal requirements applicable to insurance business
- Understand consumer protection and dispute resolution
- Know methods of preventing, handling and resolving consumer complaints
Principles of Contract and Agency- Understand the principle of insurable interest
- Understand contract and agency
Risk and Risk Management- Understand the nature and main features of risk within the insurance environment
- Apply main features of risk and risk management to scenarios
Key Insurance Principles- Understand the principle of indemnity
- Understand the principles of contribution and subrogation
- Understand the principle of good faith
- Understand the doctrine of proximate cause
Insurance Fundamentals- Know the structure and main features of the insurance market
- Understand the main features of insurance

CII Insurance Legal and Regulatory (IF1) Sample Questions:

1. In accordance with the principle of good faith, which facts must a potential policyholder disclose to the insurer when applying for insurance?

A) Any facts of law.
B) Any facts which are in the public domain.
C) Any facts which are considered material to the risk.
D) Only those facts considered likely to reduce the cost of cover


2. The purpose of Insurance Premium Tax is to

A) reimburse for claims of insolvent insurers
B) pay for flood defences.
C) fund the Association of British Insurers.
D) raise revenue for the Government.


3. Michael, an insurance company employee, strongly suspects that a recent transaction involved money laundering but decides NOT to report his suspicions to anyone. How is this treated under the current Money Laundering Regulations?

A) It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.
B) It is a disciplinary offence under the Banking Code.
C) It is a criminal offence.
D) It is a civil offence.


4. To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?

A) To suitably experienced individuals only.
B) To anyone able to fulfil the duties.
C) The agent cannot delegate her responsibility.
D) To suitably qualified individuals only.


5. Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the

A) Financial Ombudsman Service.
B) Association of British Insurers.
C) European Union.
D) Financial Services Compensation Scheme.


Solutions:

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

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