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100+ Free CII I10 Practice Questions

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2026 Statistics

Key Facts: CII I10 Exam

75 questions

I10 has 65 standalone MCQs plus 2 case studies of 5 MCQs each

CII I10 Examination Guide 2026

2 hours

Time allowed for the I10 examination

CII I10 Examination Guide 2026

No negative marking

One mark per correct answer and no marks deducted for wrong answers

CII I10 Examination Guide 2026

6 learning outcomes

From the broking market to conduct and culture in the I10 syllabus

CII I10 Examination Syllabus

20 questions

Learning outcome 2 on the broker's role is the largest area

CII I10 Examination Syllabus

10 questions

Conduct and culture (outcome 6) is tested through 2 case studies

CII I10 Examination Syllabus

RQF Level 3

I10 is a core unit within the CII Certificate in Insurance

Chartered Insurance Institute

100

Free original practice questions in this bank

OpenExamPrep

CII I10 Insurance Broking Fundamentals is a core Certificate in Insurance unit covering the role of the insurance broker, the broking market, agency, FCA regulation and conduct. The exam is 75 multiple choice questions in two hours: 65 standalone MCQs (Section A) plus two case studies of 5 MCQs each (Section B). One mark is awarded per correct answer with no negative marking, and the pass mark is set by criterion-referenced standard setting (typically around 65 to 70 percent) rather than a fixed quota. The 2026 syllabus is examined from 1 January to 31 December 2026 and covers six learning outcomes from the broking market to conduct and culture. This 100-question bank provides original practice across all six outcomes with full explanations.

Sample CII I10 Practice Questions

Try these sample questions to test your CII I10 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the primary economic rationale for the existence of insurance brokers in the insurance market?
A.They underwrite risks that insurers are unwilling to accept
B.They reduce information asymmetry by matching clients' needs to suitable insurers
C.They guarantee claims payments when an insurer becomes insolvent
D.They set the premium rates that insurers must charge
Explanation: Brokers exist mainly because they bridge the knowledge gap between clients, who often do not understand the insurance market, and insurers. By using their market knowledge to match a client's needs to a suitable insurer, they reduce information asymmetry and improve outcomes for both sides.
2A broker that does not deal directly with the insuring public but instead places business introduced by other (retail) brokers is best described as a:
A.Retail broker
B.Wholesale broker
C.Direct insurer
D.Managing general agent acting only for the client
Explanation: A wholesale broker acts as an intermediary between retail brokers and insurers, often providing access to specialist or Lloyd's markets that the retail broker cannot reach directly. The retail broker keeps the client relationship while the wholesale broker handles the placement.
3The most traditional way in which an insurance broker is remunerated for arranging cover is by:
A.A share of the insurer's underwriting profit
B.Brokerage, which is commission paid by the insurer as a percentage of the premium
C.A fixed annual retainer paid by the regulator
D.Interest earned on the client's premium before it is paid to the insurer
Explanation: The traditional and still most common method of broker remuneration is brokerage: a commission, usually expressed as a percentage of the premium, that the insurer allows the broker to deduct. Fees charged directly to the client are an increasingly common alternative.
4Under the FCA's rules on disclosure of remuneration, a broker arranging a commercial customer's insurance must disclose the amount of any commission it receives:
A.Only if the client is a consumer
B.On the commercial customer's request
C.Never, because commission is confidential to the broker
D.Only after a claim is made
Explanation: For commercial customers, ICOBS requires a broker to disclose the amount of commission it receives if the commercial customer requests it. This transparency rule helps the customer understand the broker's remuneration and any potential conflict of interest.
5Within a typical insurance broking organisation, the person responsible for negotiating the terms and price of cover with insurers on behalf of clients usually works in which function?
A.Claims handling
B.Broking or placing
C.Accounts and credit control
D.Compliance
Explanation: The broking or placing function is responsible for approaching insurers, negotiating terms and price, and arranging cover on behalf of clients. Other functions such as claims, accounts and compliance support the business but do not place the risk.
6A broker that specialises in arranging cover for unusual or hard-to-place risks, often using subscription markets such as Lloyd's, is commonly referred to as a:
A.Tied agent
B.Specialist or specialist wholesale broker
C.Loss adjuster
D.Reinsurance buyer
Explanation: Specialist brokers focus on particular classes or difficult risks and frequently use the Lloyd's and company subscription markets where several insurers each take a share. Their expertise helps place risks that mainstream insurers may not write.
7In the London subscription market, when several insurers each agree to take a proportion of a single large risk, the insurer that sets the terms and price that others follow is known as the:
A.Following market
B.Lead underwriter
C.Coverholder
D.Run-off insurer
Explanation: In a subscription placement the lead underwriter agrees the terms, conditions and premium first. The following market then writes lines on the same terms set by the leader, which is why the broker focuses on negotiating with a credible lead.
8Which of the following best describes a 'network' arrangement that some smaller insurance brokers join?
A.A government scheme that guarantees broker solvency
B.A group that gives member brokers greater collective buying power and access to insurer agencies
C.A reinsurance pool for catastrophe losses
D.A regulator-run register of authorised brokers
Explanation: Broker networks allow independent firms to pool their volume so members gain better commission terms, access to insurer agencies and shared services such as compliance support. This helps smaller brokers compete with larger consolidators.
9A broker charges its client a fee for arranging cover instead of, or in addition to, taking commission from the insurer. Compared with commission, a key advantage of fees for the client is that they:
A.Are always lower than commission
B.Make the cost of the broker's service more transparent
C.Are paid by the insurer rather than the client
D.Remove the need for any disclosure to the client
Explanation: A fee agreed with the client makes the cost of the broker's advice and service explicit and transparent, helping the client see exactly what they are paying for. This can also reduce concerns about commission-driven bias.
10Which of the following services is a broker LEAST likely to provide as part of its core role?
A.Advising the client on appropriate cover and arranging the policy
B.Assisting the client in the event of a claim
C.Acting as the insurer of last resort for the client's risk
D.Providing risk management advice to reduce the client's exposures
Explanation: Brokers advise on and arrange cover, help with claims and often provide risk management advice, but they do not act as insurers. Carrying the risk would make the broker an insurer, which is a separate regulated activity that brokers do not perform.

About the CII I10 Exam

Insurance Broking Fundamentals (I10) is a core unit in the CII Certificate in Insurance that provides knowledge and understanding of the roles and responsibilities of insurance broking organisations, including their interaction with insurers and clients, the regulatory and financial issues affecting them and conduct issues. The syllabus is built around six learning outcomes: the insurance broking market; the role and responsibilities of the broker in providing insurance products and services; contract and agency between brokers and their clients; the key legal and regulatory issues affecting brokers; the key financial issues affecting brokers; and the conduct and culture of broking business. It is assessed by 65 standalone multiple choice questions plus two case studies of five MCQs each, sat in two hours. Candidates are examined on English law and practice unless otherwise stated.

Assessment

75 MCQs in total: Section A is 65 standalone multiple choice questions and Section B is 2 case studies, each followed by 5 MCQs. Every question has four options (A, B, C, D) with one correct or best answer.

Time Limit

2 hours are allowed for the I10 examination.

Passing Score

The pass mark is set by criterion-referenced standard setting for each exam version, so there is no fixed published percentage; the nominal pass standard is typically around 65 to 70 percent. One mark per correct answer, with no negative marking.

Exam Fee

Set by the CII enrolment fee, which covers the assessment and the digital study text on RevisionMate. Current prices are on the I10 unit page and vary by enrolment option and membership status. (Chartered Insurance Institute (CII))

CII I10 Exam Content Outline

16%

The insurance broking market

Official syllabus learning outcome 1 (about 12 of 75 questions). Covers the rationale for insurance brokers, types of non-life broker such as retail, wholesale and Lloyd's brokers, the services brokers provide, how brokers are remunerated through commission and fees, and the roles within a broking organisation. Practice here builds the market and structure foundation for the rest of the unit.

27%

Role and responsibilities of the broker

Official syllabus learning outcome 2 (about 20 of 75 questions), the largest area. Covers meeting client needs, negotiating and placing insurance contracts, selecting insurers and assessing their security, designing and operating insurance programmes, the broker's role in the claims process, additional services and delegated authority agreements such as binding authorities.

8%

Contract and agency

Official syllabus learning outcome 3 (about 6 of 75 questions). Covers the broker's duties as an agent of the client and sometimes of the insurer, how conflicts of interest arise and are managed, and the items that belong in a Terms of Business Agreement (TOBA) between brokers and insurers and between brokers and their clients.

20%

Legal and regulatory issues

Official syllabus learning outcome 4 (about 15 of 75 questions). Covers the role of the FCA, the Consumer Duty and positive customer outcomes, the Insurance: Conduct of Business sourcebook (ICOBS), training and competence, sanctions checking, anti-money laundering, the Bribery Act, the Employers' Liability Tracing Office (ELTO) and data protection.

16%

Financial issues

Official syllabus learning outcome 5 (about 12 of 75 questions). Covers the different monies a broker holds, particularly client money and Insurance Broking Accounts, the impact of the Insurance Distribution Directive 2018 on handling money including risk transfer and statutory and non-statutory trusts, and the importance of retaining clients and winning new business.

13%

Conduct and culture

Official syllabus learning outcome 6 (about 10 case-study related questions). Tested through the two case studies. Covers good conduct in dealing with insurers and clients, the impact of culture on how a broking business operates, complaints handling, how errors and omissions occur and are reported, and the issues around mis-selling of insurance products.

How to Pass the CII I10 Exam

What You Need to Know

  • Passing score: The pass mark is set by criterion-referenced standard setting for each exam version, so there is no fixed published percentage; the nominal pass standard is typically around 65 to 70 percent. One mark per correct answer, with no negative marking.
  • Assessment: 75 MCQs in total: Section A is 65 standalone multiple choice questions and Section B is 2 case studies, each followed by 5 MCQs. Every question has four options (A, B, C, D) with one correct or best answer.
  • Time limit: 2 hours are allowed for the I10 examination.
  • Exam fee: Set by the CII enrolment fee, which covers the assessment and the digital study text on RevisionMate. Current prices are on the I10 unit page and vary by enrolment option and membership status.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CII I10 Study Tips from Top Performers

1Map your revision to the six I10 learning outcomes and give the most time to outcome 2 (the broker's role), which carries the most marks at about 20 of 75 questions.
2Learn the FCA framework precisely: know how the Consumer Duty, ICOBS and the senior managers and certification regime apply to a broker, because the regulatory outcome carries about 15 questions.
3Be confident on client money: distinguish risk transfer from a statutory or non-statutory trust account and know how the Insurance Distribution Directive affects how brokers hold premiums.
4Practise the agency concepts: when a broker acts as agent of the client versus the insurer, how conflicts of interest arise, and what must appear in a TOBA.
5Use the two case studies in your revision to apply conduct and culture rules, including complaints handling and how errors and omissions are reported, rather than just memorising definitions.
6Answer every question because there is no negative marking; eliminate clearly wrong options first, then choose the best remaining answer when two look plausible.

Frequently Asked Questions

How many questions are on the CII I10 exam and how long is it?

The I10 exam has 75 multiple choice questions: 65 standalone MCQs in Section A and 2 case studies of 5 MCQs each in Section B. You have 2 hours to complete it.

What is the pass mark for I10?

The CII sets the I10 pass mark by criterion-referenced standard setting for each exam version, so there is no fixed published percentage. The nominal standard is typically around 65 to 70 percent, and there is no negative marking.

What does the I10 syllabus cover?

I10 covers six learning outcomes: the insurance broking market; the broker's role and responsibilities; contract and agency; legal and regulatory issues including the FCA, Consumer Duty and ICOBS; financial issues including client money; and the conduct and culture of broking business.

Is I10 a multiple choice exam?

Yes. Every I10 question is multiple choice with four options labelled A, B, C and D, and one correct or best answer. There is no written or essay component.

How are the case studies in Section B assessed?

Section B presents two case studies, each followed by five multiple choice questions, giving ten case-study questions. They mainly test learning outcome 6 on conduct and culture by applying knowledge to a scenario.

Are these official CII practice questions?

No. These are original OpenExamPrep questions written to the published I10 syllabus and used for extra practice. The CII provides its own study text, RevisionMate resources and examination guide separately.