- Exam Code: IF1
- Exam Name: Insurance Legal and Regulatory (IF1) Exam
- Updated: Aug 26, 2026
- Q & A: 100 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Principle of Utmost Good Faith | 11% | - Remedies for breach of duty - Duty of disclosure and representation - Insurance Act 2015 provisions |
| Topic 2: Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Topic 3: Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Topic 4: Nature and Structure of Insurance | 14% | - Classification of insurance business - Participants in the insurance market - Purpose and benefits of insurance - Market structures and distribution channels |
| Topic 5: Risk and Insurance | 10% | - Features of insurable risk - Risk management and control methods - Concepts of risk and types of risk |
| Topic 6: Contract and Agency Law | 9% | - Application to insurance contracts - Law of agency and authority - Essentials of a valid contract |
| Topic 7: UK Regulatory Framework | 12% | - Authorisation and supervision - Insurance Distribution Directive (IDD) - ICOBS rules and conduct standards - Role of PRA and FCA |
| Topic 8: Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Topic 9: Principle of Insurable Interest | 5% | - Application in different insurance types - Definition and legal basis - When insurable interest must exist |
| Topic 10: Consumer Protection and Dispute Resolution | 8% | - Consumer Insurance (Disclosure and Representations) Act 2012 - Financial Ombudsman Service (FOS) - Complaints handling procedures - Financial Services Compensation Scheme (FSCS) |
| Topic 11: Principle of Indemnity | 7% | - Average clause application - Exceptions to indemnity - Methods of providing indemnity - Meaning and purpose of indemnity |
| Topic 12: Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
Question 1
The capital requirements of insurers and intermediaries are set out by
A. Prudential Regulation Authority rules.
B. Money Laundering Regulations.
C. Data Protection legislation.
D. Proceeds of Crime Act 2002.
Question 2
A claim has arisen which is fully covered under insurer A's policy and insurer B's policy. Insurer A's policy has a sum insured of £30,000 and insurer B's policy has a sum insured of £50,000. What proportion of the claim is insurer B liable for if the principle of contribution applies on a rateable proportion by sum insured basis?
A. Three eighths.
B. Three fifths.
C. Five eighths.
D. Two fifths.
Question 3
The purpose of the EU solvency requirements for insurers and intermediaries is to
A. provide authorisation to transact insurance business.
B. introduce monitoring procedures by the Prudential Regulation Authority.
C. create a standard format for the presentation of accounting data.
D. strengthen the financial security of the insurer or intermediary.
Question 4
The Financial Ombudsman Service will make a ruling on a dispute between
A. a private individual and an insurer.
B. a third party and the insurer against whom he is making a liability claim.
C. an insurance broker and an insurer.
D. an insurer and a reinsurer.
Question 5
An agent, acting outside the terms of her agency agreement, binds her principal to a contract with a third party who has reason to believe that the agent can act in that capacity. On what basis, if al all, is the principal bound by the agent's actions?
A. Not at all.
B. Consent.
C. Apparent authority.
D. Necessity.
Solutions:
| Question 1 Answer: A | Question 2 Answer: C | Question 3 Answer: C | Question 4 Answer: A | Question 5 Answer: C |
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