OpenExamsFREE PRACTICE — ANY EXAM

CII Insurance Underwriting Process (IF3) — Information & Free Practice

100 free questions · Answer explanations · No signup required

Start free practice →

Exam Review

About CII Insurance Underwriting Process (IF3)

CII Insurance Underwriting Process (IF3) · GB

Key exam facts

Provider
The Chartered Insurance Institute (CII), through its Qualifications and Assessment Department, produces and assesses IF3.
Format
75 single-answer multiple-choice questions, four options A–D; online exam centres or remote invigilation, daily subject to availability.
Exam questions
Total questions: 75.
Time limit
2 hours of examination time.
Passing score
Standard pass mark: 70%.
Exam fee
The official UK English unit purchase page displays GBP £281.03 for members and £371.78 for non-members with default Enrolment plus / Digital options. This is a study-material and assessment-entry package, not a standalone exam-only or resit fee; print orders add postage and packaging. Prices checked 30 October 2026.

Topics covered

  • Understand the material circumstances relating to the insurance underwriting process (6.67%)

    • Explain why an underwriter needs to be aware of material circumstances in assessing a risk.
    • Explain the concept of the duty of fair presentation, to whom it applies and how the duty may be modified.
    • Define the words peril and hazard as used in the insurance industry and the relationship between them.
    • Explain the significance of moral and physical hazard for underwriters and how they are manifested.
    • Describe the methods used by underwriters to obtain material information.

  • Understand underwriting procedures relating to the insurance underwriting process (20%)

    • Describe the general and specific questions asked of proposers.
    • Describe the procedure relating to quotations.
    • Explain the methods by which underwriters gather material information and their legal significance.
    • Describe the different ways in which premiums are calculated.
    • Explain the legal significance of procedures relating to the issue of cover notes, policies and certificates of insurance.
    • Describe the relevance of premium payment for valid cover.
    • Describe the methods used by insurers to collect premiums including instalment facilities.
    • Describe the features of Insurance Premium Tax.

  • Understand insurance policies in relation to the insurance underwriting process (13.33%)

    • Describe the structure, functions and contents of a policy form.
    • Explain the meaning and significance of common policy exclusions.
    • Explain the meaning and significance of common conditions.
    • Explain how excesses, deductibles and franchises are used.
    • Explain the distinction between warranties, conditions and representations.

  • Understand renewals and cancellation in relation to the insurance underwriting process (4%)

    • Describe the legal significance of procedures relating to renewals.
    • Explain how cancellation clauses operate.

  • Understand personal insurances in relation to the insurance underwriting process (4%)

    • Describe the basic features and typical policy cover of motor insurance, health insurance, household insurance, travel insurance and extended warranties.

  • Understand commercial insurances in relation to the insurance underwriting process (4%)

    • Describe the basic features and typical policy cover of property insurance, pecuniary insurance, cyber insurance and liability insurance.

  • Understand the main ‘support’ type insurance services available (2.67%)

    • Describe the basic features of additional ‘support’ type insurance services available with specific reference to helplines, authorised repairers and suppliers, risk control/advice and uninsured loss recovery services.

  • Understand underwriting considerations in relation to the insurance underwriting process (17.33%)

    • Describe the key underwriting criteria for motor insurance, health insurance and personal insurances.
    • Describe the key underwriting criteria for commercial property insurance, including fire and special perils, theft insurance, glass insurance and money insurance.
    • Describe the key underwriting criteria for pecuniary insurances, including legal expense insurance and business interruption insurance.
    • Describe the key underwriting criteria for liability insurance, including employers’ liability, public liability, pollution liability, products liability and professional indemnity.
    • Describe the key underwriting criteria for extended warranties.
    • Describe the procedures commonly used to discourage individuals from making fraudulent claims.
    • Describe the procedures commonly used to detect fraudulent claims.
    • Explain the consequences of fraudulent claims for the insurer, their insureds and the fraudulent claimant.
    • Explain the effect on insurance of data protection legislation.
    • Explain the importance of Consumer Duty and achieving positive customer outcomes.

  • Understand the principles and practices of pricing (13.33%)

    • Describe the sources, availability and types of data essential to the underwriting process.
    • Explain the importance of claims information on underwriting terms/premium rates.
    • Explain the nature of risk in terms of frequency and severity of claims.
    • Explain the significance of the claims loss ratio on premiums/acceptance of risk.
    • Explain the distinction between underwriting year, policy year, accounting year and calendar year.

  • Understand pricing factors within the context of the insurance underwriting process (6.67%)

    • Define risk premium and its key features.
    • Describe the reporting factors of expenses, return on capital, investment income, tax and intermediary remuneration.

  • Understand managing exposure within the context of the insurance underwriting process (8%)

    • Describe the basic factors influencing the market cycle.
    • Describe the principles of risk accumulation.
    • Describe the basic reinsurance considerations including the types of reinsurance.

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?

75 single-answer multiple-choice questions, four options A–D; online exam centres or remote invigilation, daily subject to availability.

How many questions are on the exam?

Total questions: 75.

How long is the exam?

2 hours of examination time.

What is the passing score?

Standard pass mark: 70%.

How much does the exam cost?

The official UK English unit purchase page displays GBP £281.03 for members and £371.78 for non-members with default Enrolment plus / Digital options. This is a study-material and assessment-entry package, not a standalone exam-only or resit fee; print orders add postage and packaging. Prices checked 30 October 2026.

Official sources and references

Confirm current exam arrangements with the exam provider.