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2026 Statistics

Key Facts: CII Basic Insurance Exam

3 modules

Exam Subjects

Cyprus Insurance Institute

50%

Passing Score

Cyprus Insurance Institute

€135

Fee per Module

CII 2026

3 years

License Renewal Cycle

Superintendent of Insurance

30 days

Life Policy Cooling-Off

Cyprus Insurance Law

MIF

Motor Insurers' Fund

Compulsory Motor Insurance Law

The CII Basic Insurance Certificate (ΠΒΑΚ) is required to practice as an insurance intermediary in Cyprus. The exam features multiple-choice questions on three core areas: Basic Principles of Insurance, Life Insurance & Pensions, and General Insurance. Registration costs €135 per module, with a passing score of 50%. The syllabus is aligned with Cyprus insurance laws and EU Solvency II frameworks.

Sample CII Basic Insurance Practice Questions

Try these sample questions to test your CII Basic Insurance 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 role of the Superintendent of Insurance in Cyprus?

A.To regulate and supervise insurance and reinsurance companies and intermediaries to protect consumers and maintain solvency

B.To set uniform premium prices for all motor and property insurance products in the market

C.To pay out claims directly to consumers when insurance companies fail

D.To act as a state-owned insurance broker for government entities

Explanation: The Superintendent of Insurance is the competent supervisory authority of the insurance sector in Cyprus. Its primary role is to ensure the protection of consumers, monitor the solvency of insurance and reinsurance undertakings, and supervise insurance intermediaries. It does not set premium rates, act as a broker, or pay claims directly.

2Which insurance principle states that a policyholder must stand in a legal relationship to the subject matter of insurance to benefit from its safety or be prejudiced by its loss?

A.Principle of Contribution

B.Principle of Insurable Interest

C.Principle of Subrogation

D.Principle of Proximate Cause

Explanation: The Principle of Insurable Interest requires that the insured must have a legally recognized relationship with the insured item or person. This means they will suffer a financial loss if the property is damaged or if the person dies. Without insurable interest, an insurance policy is considered a wager and is void.

3What is the main objective of the Principle of Indemnity in general insurance?

A.To guarantee that the policyholder receives double the value of the property in the event of total loss

B.To ensure the insured is restored to the same financial position as they enjoyed immediately before the loss, without making a profit

C.To penalize the insured if they are found partially at fault for the loss

D.To allow the insurer to deny a claim if the property is old

Explanation: The Principle of Indemnity aims to place the insured in the same financial position after a loss as they were immediately prior to it. It ensures that the insured is compensated for their actual loss and cannot make a profit from the claim, which prevents moral hazard.

4Which duty requires both the insurer and the proposer to disclose all material facts honestly prior to the conclusion of the contract?

A.Duty of Contribution

B.Duty of Subrogation

C.Duty of Utmost Good Faith (Uberrimae Fidei)

D.Duty of Proximate Cause

Explanation: The Duty of Utmost Good Faith (Uberrimae Fidei) is a fundamental principle of insurance contracts. It obligates the proposer to disclose all material facts that would influence a prudent underwriter's assessment of the risk, and it obligates the insurer to act transparently. This duty continues until the contract is finalized.

5Under Cyprus insurance law, how long is the statutory right of withdrawal (cooling-off period) for a newly issued life insurance contract?

A.14 days from the date of the verbal agreement

B.30 days from the date the policyholder is notified that the contract has been concluded

C.7 days from the date the first premium is paid

D.There is no statutory cooling-off period for life insurance in Cyprus

Explanation: Under the Cyprus insurance regulatory framework, consumers who purchase life insurance have a statutory cooling-off period of 30 days. This period begins when the policyholder is informed that the contract has been concluded. During this time, the policyholder can withdraw and receive a full refund of any premiums paid.

6What does the principle of subrogation allow an insurer to do?

A.Cancel the policy immediately if the insured files more than two claims

B.Increase the premium mid-term if a third party causes an accident

C.Stand in the place of the insured and pursue legal action against a negligent third party to recover claim payments

D.Share the claim cost with other insurers covering different risks

Explanation: Subrogation is an extension of the principle of indemnity. Once the insurer pays the claim to the insured, the insurer acquires the legal rights of the insured to recover the loss from the negligent third party who caused it. This prevents the insured from recovering twice for the same loss.

7In insurance terminology, what is 'proximate cause'?

A.The cause of loss that occurred closest in time to the damage

B.The active, efficient cause that sets in motion a train of events leading to a loss, without the intervention of any new force

C.The most expensive item of damage in a claim

D.A peril that is specifically excluded from all insurance policies

Explanation: Proximate cause is the dominant, effective cause that directly brings about the loss. It is not necessarily the closest event in time, but rather the active force that set the sequence of events in motion. Insurers use this principle to determine if the loss was caused by an insured peril.

8Which principle applies when a policyholder has identical insurance coverage with two different insurers and suffers a loss?

A.Principle of Contribution

B.Principle of Average

C.Principle of Subrogation

D.Principle of Arbitration

Explanation: The Principle of Contribution dictates that if an insured has double insurance (covering the same interest, risk, and subject matter with more than one insurer), the insurers will share the cost of the indemnity rateably. The insured cannot recover the full loss from both insurers to profit.

9Which of the following is considered a 'material fact' that a proposer must disclose when applying for motor insurance in Cyprus?

A.The color of the car they intend to drive

B.The policyholder's history of traffic convictions, license suspensions, or recent at-fault accidents

C.The name of the bank where they hold their personal savings account

D.The number of domestic trips they plan to take during the year

Explanation: A material fact is any piece of information that would influence a prudent underwriter in deciding whether to accept a risk and at what premium. Traffic convictions, suspensions, and claims history directly reflect the driver's risk profile and must be disclosed under utmost good faith.

10What is the primary function of a 'proposal form' in Cyprus insurance practice?

A.To act as a legally binding receipt for premium payments

B.To gather all necessary material facts from the proposer to enable the insurer to evaluate the risk

C.To serve as a formal certificate of registration for the Motor Insurers' Fund

D.To outline the final policy terms and conditions after the policy is active

Explanation: A proposal form is a questionnaire designed by the insurer to collect relevant material facts about the risk being proposed. The answers provided form the basis of the insurance contract, and any misrepresentation on this form can affect the validity of the policy.

About the CII Basic Insurance Exam

The CII Basic Insurance Training Certificate (ΠΒΑΚ) is the essential entry-level qualification for insurance intermediaries (agents, brokers, and advisors) in Cyprus. Administered by the Cyprus Insurance Institute in collaboration with the Superintendent of Insurance, the program ensures candidates possess foundational knowledge in insurance contract law, core legal principles (such as indemnity, utmost good faith, and proximate cause), life insurance products, pension/provident fund regulations, and general insurance lines, including compulsory Cyprus motor insurance and liability covers.

Assessment

100 multiple-choice questions representing the three key modules

Time Limit

2 hours

Passing Score

50%

Exam Fee

€135/module (Cyprus Insurance Institute (CII) in cooperation with the Superintendent of Insurance)

CII Basic Insurance Exam Content Outline

40%

Basic Principles of Insurance

Foundational legal concepts (insurable interest, utmost good faith, indemnity, subrogation, contribution, proximate cause), Cyprus regulatory framework, role of the Superintendent of Insurance, and Insurance Distribution Directive (IDD) guidelines.

30%

Life Insurance and Pensions

Traditional life insurance (term, whole life, endowment), unit-linked policies, critical illness riders, beneficiary designations, tax treatment of premiums/benefits, and Pillar 2 Provident Funds (Ταμεία Προνοίας).

30%

General Insurance

Compulsory motor insurance (third-party liability, Motor Insurers' Fund), property/casualty insurance, the Average Clause for under-insurance, employers' and public liability, professional indemnity, and marine/aviation basics.

How to Pass the CII Basic Insurance Exam

What You Need to Know

Passing score: 50%
Assessment: 100 multiple-choice questions representing the three key modules
Time limit: 2 hours
Exam fee: €135/module

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 Basic Insurance Study Tips from Top Performers

1Master the six core insurance principles: insurable interest, utmost good faith, indemnity, subrogation, contribution, and proximate cause.

2Understand how the Average Clause is applied to under-insured properties using the standard proportion formula: (Sum Insured / Actual Value) * Loss.

3Learn the specific regulations surrounding compulsory motor insurance in Cyprus, including the role and funding of the Motor Insurers' Fund (MIF).

4Know the rules on life insurance assignment, irrevocable beneficiaries, and the statutory 30-day cooling-off period.

5Study the different pillars of the Cyprus pension system, focusing on Pillar 2 Provident Funds (Ταμεία Προνοίας).

6Familiarize yourself with the licensing renewal cycle (every 3 years) and the mandatory requirement for Professional Indemnity insurance.

Frequently Asked Questions

What is the CII Basic Insurance Training Certificate (ΠΒΑΚ)?

The CII Basic Insurance Training Certificate (ΠΒΑΚ - Πιστοποιητικό Βασικής Ασφαλιστικής Κατάρτισης) is the entry-level professional qualification required by the Cyprus Superintendent of Insurance for anyone wishing to register as an insurance agent, broker, advisor, or sub-agent in Cyprus. It covers the core legal principles of insurance, life products, pensions, and general insurance classes.

What are the main topics covered in the ΠΒΑΚ exam?

The syllabus is divided into three key subjects: 1) Basic Principles of Insurance (core legal doctrines like insurable interest, indemnity, and utmost good faith, plus local regulations); 2) Life Insurance and Pensions (term, whole life, unit-linked, and provident funds); and 3) General Insurance (compulsory motor insurance, property average clause, and liability policies).

How much does the ΠΒΑΚ exam cost?

The registration fee for each of the three examination modules is €135, which typically includes the official study textbook from the Cyprus Insurance Institute. If a candidate fails a module, the retake fee is €90 per module.

What is the passing score for the Cyprus Insurance Institute exams?

The passing score for each examination module under the Cyprus Insurance Institute guidelines is 50%. Candidates must pass all three modules to obtain the full Basic Insurance Training Certificate.

What are the licensing requirements for insurance intermediaries in Cyprus?

To be licensed by the Superintendent of Insurance, candidates must pass the ΠΒΑΚ exams (or hold a higher qualification like the Diploma in Insurance Studies - ΔΑΣ), submit a clean criminal record, have a minimum of a high school diploma, and maintain a valid Professional Indemnity insurance policy.