Last Updated: Aug 20, 2026
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| Section | Objectives |
|---|---|
| Topic 1: 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 |
| Topic 2: Insurance Fundamentals | - Understand the main features of insurance - Know the structure and main features of the insurance market |
| Topic 3: 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 4: Principles of Contract and Agency | - Understand the principle of insurable interest - Understand contract and agency |
| Topic 5: Professional and Ethical Standards | - Understand the CII Code of Ethics and apply principles to non-complex scenarios |
| Topic 6: Key Insurance Principles | - Understand the principle of indemnity - Understand the principles of contribution and subrogation - Understand the doctrine of proximate cause - Understand the principle of good faith |
1. If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from
A) pursuing subrogation rights.
B) disclosing details to a third party.
C) reinsuring the risk.
D) increasing the premium.
2. A Terms of Business Agreement between an insurer and an intermediary sets out the
A) agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
B) framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
C) disaster recovery procedures to apply if there is a major disaster affecting the insurer.
D) criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
3. Alex decides to insure his factory. In doing this he is primarily
A) transferring the risk to the insurer.
B) reducing his physical hazard.
C) protecting his business against certainty of loss.
D) reducing his moral hazard.
4. When a member of the Chartered Insurance Institute (CM) is dealing with a client, what specific guidance does the Code of Ethics give in relation to the member's knowledge and expertise?
A) The member must be qualified to a minimum of the CD's diploma qualification.
B) The member must notify the Cll of any shortcomings in his knowledge.
C) The member must provide the client with a copy of appropriate qualifications.
D) The member's knowledge and expertise must be kept up to date and relevant.
5. When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
A) Within 30 days of cover being incepted.
B) At the time of the sale or immediately afterwards.
C) At the lime of a claim.
D) Within 7 days of a complaint being made.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: B |
Norma
Sandra
Virginia
Ansel
Bevis
Clement
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