Real CII IF1 practice exam questions for easy pass!
Last Updated: Jul 24, 2026
No. of Questions: 100 Questions & Answers with Testing Engine
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| Section | Objectives |
|---|---|
| Topic 1: Regulation and Legal Requirements | - Know methods of preventing, handling and resolving consumer complaints - Understand consumer protection and dispute resolution - Understand main regulatory and legal requirements applicable to insurance business |
| Topic 2: Professional and Ethical Standards | - Understand the CII Code of Ethics and apply principles to non-complex scenarios |
| Topic 3: Key Insurance Principles | - Understand the principle of good faith - Understand the principle of indemnity - Understand the principles of contribution and subrogation - Understand the doctrine of proximate cause |
| Topic 4: Insurance Fundamentals | - Understand the main features of insurance - Know the structure and main features of the insurance market |
| Topic 5: Risk and Risk Management | - Apply main features of risk and risk management to scenarios - Understand the nature and main features of risk within the insurance environment |
| Topic 6: Principles of Contract and Agency | - Understand the principle of insurable interest - Understand contract and agency |
1. 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 under the Banking Code.
B) It is a criminal offence.
C) It is a civil offence.
D) It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.
2. The purpose of the EU solvency requirements for insurers and intermediaries is to
A) create a standard format for the presentation of accounting data.
B) introduce monitoring procedures by the Prudential Regulation Authority.
C) strengthen the financial security of the insurer or intermediary.
D) provide authorisation to transact insurance business.
3. Who cedes business to a reinsurer?
A) The agent.
B) The insured.
C) The insurer.
D) The assessor.
4. Which general rule does the Contracts (Rights of Third Parties) Act 1999 seek to modify?
A) Subrogation.
B) Good faith.
C) Privity of contract.
D) Contra proferentem.
5. Bye-laws are passed at the Lloyd's Market by the
A) Corporation of Lloyd's.
B) Lloyds Managing Agent.
C) Council of Lloyd's.
D) Lloyd's Market Association.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: C |
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