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Exam Review

Key Facts: CII IF1 Exam

100 questions

IF1 is 100 compulsory multiple-choice questions

CII IF1 Examination Guide 2026

2 hours

Time allowed to complete the IF1 exam

CII IF1 Examination Guide 2026

70% standard pass

Applied to marks moderated for exam-version difficulty

CII Understanding your exam result

No negative marking

Wrong answers are not penalised, so every question should be attempted

CII IF1 Examination Guide 2026

English law

IF1 is examined on the basis of the law and practice in England unless stated

CII IF1 Examination Guide 2026

60 hours

CII-recommended study time for the IF1 unit

CII - IF1 unit page

Cert CII unit

IF1 is a foundation unit of the CII Certificate in Insurance

CII - IF1 unit page

CII IF1 Insurance, Legal and Regulatory is a foundation unit of the CII Certificate in Insurance. The exam is 100 compulsory multiple-choice questions in 2 hours, with a standard pass mark of 70%, applied to moderated marks and no negative marking. It covers three linked areas: insurance and risk principles, the legal principles of insurance contracts (insurable interest, utmost good faith and the duty of fair presentation, proximate cause, indemnity, subrogation and contribution), and UK regulation and consumer protection (FCA/PRA, the Financial Ombudsman Service and the Financial Services Compensation Scheme). The CII recommends around 60 hours of study and examines on the basis of English law unless stated otherwise. This practice bank provides original IF1-style practice with explanations for every option.

Sample CII IF1 Practice Questions

Try these sample questions to review concepts for the CII IF1 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 155+ question experience with AI tutoring.

1In insurance, the term 'risk' is most accurately described as:
A.The certainty that a loss will occur
B.The possibility of an outcome that differs from what is expected
C.The premium charged for a policy
D.The legal owner of an insured item
Explanation: In insurance, risk refers to uncertainty about the outcome of a future event, in particular the possibility of an adverse or unexpected result. If an outcome were certain, it would not be insurable as a risk.
2A 'pure risk' is best described as a risk where the outcome can result in:
A.Either a loss or a gain
B.A loss or, at best, breaking even
C.Always a financial gain
D.No possibility of any financial consequence in any circumstances
Explanation: A pure risk has only two possible outcomes: a loss or no loss (break even); there is no possibility of gain. Most insurable risks are pure risks, such as fire or theft.
3Which of the following is normally regarded as a speculative risk that is NOT insurable?
A.Damage to a factory by fire
B.Theft of stock from a warehouse
C.Investing in shares hoping the price will rise
D.Legal liability for accidentally injuring a member of the public
Explanation: Investing in shares carries the possibility of a gain as well as a loss, making it a speculative risk. Insurance deals with pure risks, where only loss or no loss is possible, so speculative risks are generally uninsurable.
4In risk terminology, a 'peril' is best defined as:
A.A condition that increases the likelihood or severity of a loss
B.The cause of a loss
C.The financial value placed on a loss
D.The person who suffers the loss
Explanation: A peril is the prime cause of a loss, such as fire, flood or theft. It is distinguished from a hazard, which is a condition that increases the chance or severity of the peril operating.
5A proposer habitually leaves insured premises unlocked despite security advice. This behaviour is an example of:
A.Moral hazard arising from the proposer's careless conduct
B.A hazard arising solely from measurable building characteristics
C.The peril of theft itself rather than a factor affecting that peril
D.A speculative risk because both profit and loss are possible
Explanation: CII material distinguishes measurable physical characteristics from moral hazard arising from people's attitudes or behaviour. The proposer's repeated choice to ignore security advice is careless conduct and therefore a moral hazard.
6Insurance works on the principle of pooling. The main purpose of a common pool of premiums is to:
A.Guarantee every contributor makes a profit
B.Allow the losses of the few to be met by the contributions of the many
C.Remove all risk from the insurance market
D.Replace the need for any premiums
Explanation: Pooling means many people contribute premiums to a common fund, and the comparatively few who suffer losses are compensated from that fund. This spreads the financial impact of risk across the group.
7For a risk to be insurable, the loss must generally be 'fortuitous'. This means the loss must be:
A.Certain to happen during the policy
B.Accidental and outside the control of the insured
C.Deliberately caused by the insured
D.Of a very large financial value
Explanation: A fortuitous loss is one that happens by chance and is not inevitable or deliberately caused by the insured. Insurers cannot cover losses that are certain or intentionally brought about by the policyholder.
8Which feature of an insurable risk reflects the idea that the loss must be capable of being given a monetary value?
A.Fortuitous
B.Financial value
C.Public policy
D.Homogeneous exposures
Explanation: For a risk to be insurable, the loss must be measurable in financial terms so that the insurer can pay a sum of money in settlement. Losses that cannot be valued in money, such as pure sentiment, are difficult to insure.
9A risk that would be against the public interest or unlawful to insure, such as a fine for a criminal offence, is uninsurable on grounds of:
A.Financial value
B.Public policy
C.Fortuity
D.Indemnity
Explanation: Public policy prevents the insurance of risks that would be contrary to law or the public interest, such as paying a person's criminal fine. Allowing such cover could undermine the deterrent effect of the penalty.
10Within the structure of the UK insurance market, Lloyd's of London is best described as:
A.A single insurance company
B.A marketplace where members join syndicates to underwrite risks
C.The UK insurance regulator
D.A government-backed compensation fund
Explanation: Lloyd's is not an insurance company but a society and marketplace where members, grouped into syndicates, accept insurance risks. Capital is provided by members, and syndicates are managed by managing agents.

About the CII IF1 Exam

IF1 Insurance, Legal and Regulatory is a foundation unit of the CII Certificate in Insurance (Cert CII). It provides knowledge and understanding of the basic principles of insurance, the main legal principles relating to insurance contracts and insurance business, and the regulatory framework and consumer-protection rules that govern the UK insurance market. The exam is a 100-question, two-hour multiple-choice paper examined on the basis of English law and practice unless otherwise stated. Core themes include the nature of risk and the insurance market, the essential elements of valid contracts and agency, insurable interest, utmost good faith and the duty of fair presentation under the Insurance Act 2015, proximate cause, indemnity and its corollaries (subrogation and contribution), and the roles of the FCA and PRA, complaints handling through the Financial Ombudsman Service, the Financial Services Compensation Scheme and the treating-customers-fairly regime.

Exam sponsor: Chartered Insurance Institute (CII). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

100 compulsory multiple-choice questions, each with four options. Questions are spread across insurance principles, legal principles of insurance, and UK regulation and consumer protection. There is no negative marking.

Time Limit

2 hours (120 minutes) to answer all 100 multiple-choice questions.

Passing Score

Standard pass mark 70%; CII moderates marks for the difficulty of the exam version before comparing them with that standard. It is not a guaranteed fixed raw 70-correct-answer rule.

Exam / Certification Fees

Check the current CII purchase options for the selected assessment or enrolment package and member status; an exact current assessment-only price is not verified here.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

9 questions

LO1: Risk in the insurance environment

2026 syllabus indicative allocation: 9 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

2 questions

LO2: Applying risk management

2026 syllabus indicative allocation: 2 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

8 questions

LO3: Main features of insurance

2026 syllabus indicative allocation: 8 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

14 questions

LO4: Insurance market structure

2026 syllabus indicative allocation: 14 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

9 questions

LO5: Contract and agency

2026 syllabus indicative allocation: 9 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

5 questions

LO6: Insurable interest

2026 syllabus indicative allocation: 5 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

11 questions

LO7: Good faith

2026 syllabus indicative allocation: 11 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

2 questions

LO8: Proximate cause

2026 syllabus indicative allocation: 2 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

7 questions

LO9: Indemnity

2026 syllabus indicative allocation: 7 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

4 questions

LO10: Contribution and subrogation

2026 syllabus indicative allocation: 4 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

15 questions

LO11: Regulatory and legal requirements

2026 syllabus indicative allocation: 15 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

6 questions

LO12: Consumer protection and dispute resolution

2026 syllabus indicative allocation: 6 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

4 questions

LO13: Consumer complaints

2026 syllabus indicative allocation: 4 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

4 questions

LO14: CII Code of Ethics

2026 syllabus indicative allocation: 4 of 100 questions. Live-form allocations generally vary by up to two questions per learning outcome.

Preparing for the CII IF1 Exam

What You Need to Know

  • Passing score: Standard pass mark 70%; CII moderates marks for the difficulty of the exam version before comparing them with that standard. It is not a guaranteed fixed raw 70-correct-answer rule.
  • Assessment: 100 compulsory multiple-choice questions, each with four options. Questions are spread across insurance principles, legal principles of insurance, and UK regulation and consumer protection. There is no negative marking.
  • Time limit: 2 hours (120 minutes) to answer all 100 multiple-choice questions.
  • Exam / certification fees: Check the current CII purchase options for the selected assessment or enrolment package and member status; an exact current assessment-only price is not verified here. Official sources

Using Our Practice Resources

  • Work through all 155 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CII IF1: Suggested Study Strategy

1Learn the four conditions for indemnity-related concepts together: indemnity, subrogation, contribution and average are frequently tested as a linked set, so understand how each one prevents a policyholder profiting from a loss.
2Master the difference between utmost good faith (common law) and the duty of fair presentation under the Insurance Act 2015 for non-consumer business, and the duty to take reasonable care not to make a misrepresentation under CIDRA 2012 for consumers.
3Distinguish insurable-interest timing by class: life cover focuses on inception, marine cover on the time of loss, and other classes follow their applicable legal and policy rules.
4Keep the regulators straight: the FCA is the conduct regulator for all firms, while the PRA prudentially regulates insurers and major banks, with some firms dual-regulated.
5Know the consumer-protection backstops cold: the Financial Ombudsman Service handles eligible complaints and the Financial Services Compensation Scheme pays claims if an insurer fails.
6Use the official IF1 specimen examination guide to practise the four-option MCQ style and to time yourself at roughly one minute per question so you can complete all 100 within 2 hours.

Frequently Asked Questions

How many questions are on the CII IF1 exam and how long is it?

IF1 is 100 compulsory multiple-choice questions answered in 2 hours (120 minutes). Each question has four options and there is no negative marking for wrong answers.

What is the pass mark for CII IF1?

Standard pass mark 70%; CII moderates marks for the difficulty of the exam version before comparing them with that standard. It is not a guaranteed fixed raw 70-correct-answer rule.

What does the IF1 syllabus cover?

Three linked areas: the principles of insurance and risk, the legal principles relating to insurance contracts (such as insurable interest, utmost good faith, proximate cause and indemnity), and UK regulation and consumer protection including the FCA and PRA.

Which law does IF1 examine?

Candidates are examined on the basis of the law and practice in England unless a question states otherwise. Key statutes include the Insurance Act 2015, the Consumer Insurance (Disclosure and Representations) Act 2012 and FSMA 2000.

How much study time does the CII recommend for IF1?

CII specifies 60 study hours for IF1. A 6–10 week schedule is an editorial planning example; adjust the timetable to your background and practice results.

Are these official CII practice questions?

No. These are original OpenExamPrep questions modelled on the IF1 syllabus and exam style. The CII provides its own study text, knowledge checker and specimen examination guide separately.