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CII Insurance, Legal and Regulatory (IF1) — Information & Free Practice

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About CII Insurance, Legal and Regulatory (IF1)

CII Insurance, Legal and Regulatory (IF1) · GB

Key exam facts

Provider
Chartered Insurance Institute (CII): examination owner and assessment provider; the examination guide is produced by its Qualifications and Assessment Department.
Format
Computer-based multiple-choice examination: four options per question, one correct response; available at online exam centres or via remote invigilation.
Exam questions
Total questions: 100.
Time limit
2 hours of examination time under standard conditions.
Passing score
Standard pass mark: 70%. CII adjusts MCQ marks for exam-version difficulty; this is not a guarantee that exactly 70 raw correct responses are sufficient on every paper.
Exam fee
GBP £281.03 for CII members or £371.78 for non-members for the displayed default digital Enrolment plus package, checked 30 October 2026. Includes 12-month digital learning access and an assessment-entry voucher valid for 18 months; this is a combined package price, not a standalone examination or resit fee. Print delivery incurs additional postage and packaging.

Topics covered

  • Understand the nature and main features of risk within the insurance environment (9%)

    • Describe the concepts of risk and risk perception.
    • Explain the risk management function and process.
    • Describe the various categories of risk.
    • Explain the types of risk that can be insured and the types of risk that cannot.
    • Describe the components of risk.
    • Understand the relationship between frequency and severity and how they are applied.
    • Explain the difference between a peril and hazard as they relate to insurance.

  • Know how to apply the main features of risk and risk management to a given set of circumstances (2%)

    • Apply the main features of risk and risk management to different sets of circumstances/scenarios.

  • Understand the main features of insurance (8%)

    • Explain the need for insurance.
    • Explain the basis of insurance as a risk transfer mechanism.
    • Describe how insurance benefits policyholders and society in general.
    • Explain the term coinsurance and how this is used in two distinct ways in the insurance market.
    • Describe what is meant by dual insurance and self-insurance.
    • Describe the main classes of insurance.
    • Explain the purpose of Insurance Premium Tax and the current rates.

  • Know the structure and main features of the insurance market (14%)

    • Describe the structure of the insurance market and the five main groups of people.
    • Describe the main categories of insurer in terms of ownership.
    • Explain the structure of the Lloyd’s market and main features.
    • Describe the London Market.
    • Describe the distribution channels used for the selling of insurance.
    • Explain the purpose of reinsurance.
    • Describe the key roles of professionals in insurance.
    • Explain the main functions of the principal market organisations.

  • Understand contract and agency (9%)

    • Describe the essential elements of a valid contract.
    • Explain conditional and unconditional acceptance of a contract.
    • Describe consideration which supports the contract.
    • Explain how contracts can be cancelled or terminated.
    • Describe methods of creating an agent/principal relationship.
    • Describe the duties of an agent and the duties of a principal.
    • Explain the consequences of an agent’s actions on the principal.
    • Describe what should be included in a Terms of Business Agreement (TOBA) between insurers and intermediaries.

  • Understand the principle of insurable interest (5%)

    • Define insurable interest and its components.
    • Explain the timing of insurable interest.
    • Explain how insurable interest can arise.
    • Explain the application of insurable interest to property and liability insurance contracts.

  • Understand the principle of good faith (11%)

    • Explain the principle of good faith and how this applies to contracts of insurance.
    • Explain how the duty of fair presentation operates in insurance policies and how it can be altered in terms of the policy.
    • Define material circumstances.
    • Identify and distinguish between physical and moral hazards in relation to a proposal.
    • Explain an insurer’s right to information.
    • Explain material circumstances that do not require disclosure.
    • Explain the consequences of non-disclosure or a breach of the duty of fair presentation.

  • Understand the doctrine of proximate cause and its application to non-complex claims (2%)

    • Explain the meaning of proximate cause.
    • Apply proximate cause to scenarios that relate to non-complex claims.

  • Understand the principle of indemnity and how this is applied to contracts of insurance (7%)

    • Define the principle of indemnity.
    • Explain the settlement options available to insurers which will provide the insured with the necessary indemnity.
    • Identify and distinguish between indemnity and benefit policies.
    • Explain what is meant by agreed value policies, first loss policies and new for old cover.
    • Calculate a non-complex claim payment, subject to the pro rata condition of average.

  • Understand the principles of contribution and subrogation (4%)

    • Explain the principle of contribution and when and how it applies to the sharing of claim payments between insurers in straightforward property cases.
    • Explain the principle of subrogation and why it may or may not be pursued in simple circumstances.

  • Understand the main regulatory and legal requirements applicable to the transaction of insurance business (15%)

    • Explain the reasons for compulsory insurance and describe the types of insurances which are compulsory in the UK.
    • Explain the application of the Consumer Rights Act 2015 in relation to insurance contracts.
    • Explain the Contracts (Rights of Third Parties) Act 1999 in relation to insurance contracts.
    • Explain the role of the financial services regulators in the authorisation, supervision and regulation of insurers and intermediaries.
    • Describe the financial services regulatory principles for businesses and the Financial Conduct Authority and Prudential Regulation Authority's regulation of individuals in broad outline.
    • Explain the importance of Consumer Duty and positive customer outcomes.
    • Describe the consequences of non-compliance – discipline and enforcement.
    • Explain the requirements for reporting, record keeping and training and competence.
    • Describe the scope and effect of the Insurance: Conduct of Business sourcebook (ICOBS) in broad outline.
    • Describe the solvency requirements for insurers and intermediaries and financial services regulatory risk-based capital requirements in broad outline.

  • Understand consumer protection and dispute resolution (6%)

    • Describe the main provisions of the current data protection legislation.
    • Describe the main provisions of the current Money Laundering Regulations and their application to insurers and intermediaries.

  • Know the main methods of preventing, handling and resolving consumer complaints (4%)

    • Describe the financial services regulatory requirements in relation to handling complaints.
    • Explain the services provided by the Financial Ombudsman Service.
    • Describe the main provisions of the Financial Services Compensation Scheme, including the range of activities falling within its scope.

  • Understand the CII Code of Ethics and be able to apply the principles to non-complex scenarios (4%)

    • Explain the five main principles in the CII Code of Ethics.
    • Apply the main principles in the CII Code of Ethics and identify positive and negative indicators of ethical behaviour to non-complex scenarios.

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

Computer-based multiple-choice examination: four options per question, one correct response; available at online exam centres or via remote invigilation.

How many questions are on the exam?

Total questions: 100.

How long is the exam?

2 hours of examination time under standard conditions.

What is the passing score?

Standard pass mark: 70%. CII adjusts MCQ marks for exam-version difficulty; this is not a guarantee that exactly 70 raw correct responses are sufficient on every paper.

How much does the exam cost?

GBP £281.03 for CII members or £371.78 for non-members for the displayed default digital Enrolment plus package, checked 30 October 2026. Includes 12-month digital learning access and an assessment-entry voucher valid for 18 months; this is a combined package price, not a standalone examination or resit fee. Print delivery incurs additional postage and packaging.

Official sources and references

Confirm current exam arrangements with the exam provider.