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2026 Statistics

Key Facts: CIIG Diploma Exam

100

Practice Questions

Simulated exam format

3 hrs

Exam Time

Per module exam limit

60%

Passing Score

60 correct answers required

Act 1061

Governing Law

Insurance Act 2021

Modular

Exam Format

Quarterly diet schedule

Cert

Prerequisite

CIIG Cert or equivalent

The CIIG Diploma in Insurance is a technical and supervisory credential in the Ghanaian insurance sector. It requires passing modular examinations, each typically 3 hours in duration, with a passing score of 60%. The syllabus covers advanced insurance law, business finance, commercial property, liability, claims, and reinsurance under the Ghana Insurance Act 2021.

Sample CIIG Diploma Practice Questions

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

1Which of the following best defines the principle of insurable interest in insurance?

A.The expectation of earning a high profit or interest from an insurance investment.

B.The legal right to insure arising out of a financial relationship recognized at law between the insured and the subject matter.

C.The policyholder's personal interest in learning how insurance companies invest their premium income.

D.The general public interest in ensuring that insurance companies remain solvent and regulated.

Explanation: Insurable interest is the legal right to insure arising out of a financial relationship recognized at law between the insured and the subject matter of insurance. The insured must stand to benefit from its safety or be prejudiced by its loss. Without it, the insurance contract is legally void and considered a mere wager.

2In property insurance, when must insurable interest exist for a claim to be legally payable under common law?

A.Only at the time the policy is initially proposed and issued.

B.Only at the time of renewal of the policy contract.

C.At both the inception of the policy and at the time of the loss.

D.Only at the time of the loss, regardless of inception.

Explanation: In property insurance, insurable interest must exist both at the inception of the policy and at the time of the loss. If the insured sells the property before the loss, they no longer have insurable interest and cannot claim under the policy. This differs from life insurance, where insurable interest is only required at inception.

3The principle of utmost good faith (uberrimae fidei) requires that:

A.Both parties to the contract must disclose all material facts fully and accurately.

B.Only the insurance company must act in good faith when assessing claims.

C.The insured must guarantee that no losses will occur during the policy period.

D.The regulator must verify all facts before a policy can be legally issued.

Explanation: Utmost good faith requires both the insurer and the insured to disclose all material facts fully and accurately. A material fact is one that would influence a prudent underwriter in accepting the risk or setting the premium. Breach of this duty makes the contract voidable at the option of the aggrieved party.

4Under the Ghana Insurance Act 2021 (Act 1061), what constitutes a 'material fact' that must be disclosed by the proposer?

A.Any fact that the proposer personally believes is important to their lifestyle.

B.Any fact that has been previously published in national newspapers in Ghana.

C.Any fact that would influence the decision of a prudent insurer in accepting the risk or determining the premium.

D.Any fact relating to the insurance company's own capital structure and financial ratings.

Explanation: A material fact is defined in insurance law and Act 1061 as any circumstance that would influence the judgment of a prudent insurer in determining whether to accept the risk and on what terms (such as premium rate). The test is objective, based on a 'prudent underwriter' rather than the proposer's subjective belief. Failure to disclose material facts can lead to the policy being voided.

5Which of the following is the standard legal remedy for an insurer in Ghana if the insured is guilty of non-disclosure of a material fact?

A.The insurer can fine the insured up to double the premium amount.

B.The insurer can treat the contract as voidable and reject claims, returning or retaining premiums based on fraud.

C.The insurer must rewrite the policy automatically and charge retrospective premiums.

D.The insurer must report the insured to the National Insurance Commission (NIC) for prosecution.

Explanation: If utmost good faith is breached through non-disclosure or misrepresentation of a material fact, the contract is voidable at the option of the aggrieved party (usually the insurer). The insurer can choose to avoid the contract from inception (ab initio) and reject any claims. Under standard rules, if fraud is involved, the premium is forfeited; otherwise, it is refunded.

6The principle of indemnity states that after a loss, the insured should:

A.Be placed in a better financial position than they were before the loss occurred.

B.Receive the exact replacement of all lost items regardless of depreciation or wear and tear.

C.Be restored to the same financial position they enjoyed immediately prior to the loss.

D.Receive the total sum insured stated on the policy schedule as a cash payment.

Explanation: Indemnity is a core principle aimed at restoring the insured to the same financial position they enjoyed immediately before the loss occurred, neither better nor worse. This prevents the insured from profiting from a loss, which would create a moral hazard. Most property policies contain clauses to calculate indemnity based on actual cash value or repair costs.

7Which of the following best describes the relationship between the principle of indemnity and the principle of subrogation?

A.Subrogation is a corollary of indemnity that prevents the insured from recovering double compensation for a single loss.

B.Subrogation allows the insured to claim from both the insurer and a third party to maximize their profit.

C.Subrogation acts as a penalty that reduces the claim payout if the insured was partially at fault.

D.Subrogation requires the insurer to pay the claim first before the insured can buy a new policy.

Explanation: Subrogation is a corollary of indemnity. It gives the insurer the right to step into the shoes of the insured to recover the cost of a claim from a negligent third party. Because indemnity prohibits the insured from recovering more than their actual loss, subrogation ensures the insured does not collect from both the insurer and the third party.

8Under what condition does the principle of contribution apply to an insurance claim?

A.Only when the insured has paid at least 50% of the premium before the loss occurs.

B.When the loss is caused by multiple distinct perils acting simultaneously.

C.When the insured has multiple policies covering different properties with the same insurer.

D.When two or more policies of indemnity cover the same insurable interest, same subject matter, and same peril at the time of loss.

Explanation: Contribution applies when there are two or more policies covering the same insurable interest, the same subject matter of insurance, the same peril, and both policies are active at the time of the loss. Under this principle, the insurers share the loss proportionately (e.g., using rateable proportion methods), preventing the insured from collecting the full amount from each insurer.

9In insurance claims, the doctrine of proximate cause (causa proxima) is used to determine:

A.The geographic location where the accident or damage occurred.

B.The active, efficient cause that sets in motion a train of events bringing about a loss, without the intervention of any force started actively from a new source.

C.The estimated financial value of the property immediately before the damage.

D.The identity of the third party who is legally liable for causing the accident.

Explanation: Proximate cause is the active, efficient cause that sets in motion a chain of events bringing about a loss, without the intervention of any new, independent force. In insurance, a loss is only covered if the proximate cause is an insured peril. If the proximate cause is an excluded peril, the claim is rejected even if an insured peril occurred later in the chain.

10What is the primary regulatory purpose of the Ghana Insurance Act 2021 (Act 1061)?

A.To nationalize all private insurance companies operating in Ghana.

B.To set fixed premiums that all insurance companies must charge for motor policies.

C.To provide a robust regulatory framework that ensures solvent insurance markets, protects consumers, and encourages local participation.

D.To eliminate the need for insurance brokers by establishing a direct government portal.

Explanation: The Insurance Act 2021 (Act 1061) provides the legal framework for the licensing, regulation, and supervision of insurance business in Ghana. Its primary goals are to ensure the financial soundness and solvency of insurers, protect consumer interests, promote microinsurance, and strengthen local capacity in the Ghanaian insurance sector.

About the CIIG Diploma Exam

The CIIG Diploma in Insurance is an intermediate professional qualification designed for insurance staff, supervisors, and team leaders. It builds upon foundational knowledge to cover advanced insurance law, business and finance, commercial property and pecuniary insurances, liability insurances, underwriting and claims management, and reinsurance principles in the Ghanaian market.

Questions

100 scored questions

Time Limit

3 hours

Passing Score

60%

Exam Fee

GHS 600 (Chartered Insurance Institute of Ghana (CIIG) / Ghana Insurance College)

CIIG Diploma Exam Content Outline

25%

Insurance Principles & Law

Deep dive into insurance contract law, legal principles (utmost good faith, indemnity, subrogation, proximate cause), and local regulations under the Insurance Act 2021 (Act 1061).

25%

Insurance Practice & Operations

Advanced underwriting, risk management, claims handling processes, reserving techniques, and corporate governance for insurance managers.

20%

Quantitative Methods & Statistics

Basic statistical concepts, probability distributions, interest theory, annuity calculations, and actuarial basics for pricing and reserving.

30%

Technical & Specialized Lines

Commercial property, business interruption, liability insurance, engineering risks, plate glass, travel insurance, performance bonds, and reinsurance treaty programming.

How to Pass the CIIG Diploma Exam

What You Need to Know

Passing score: 60%
Exam length: 100 questions
Time limit: 3 hours
Exam fee: GHS 600

Keys to Passing

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

CIIG Diploma Study Tips from Top Performers

1Master the quantitative formulas for interest theory, annuities, and compound interest; they represent about 20% of the exam.

2Understand how the Average Clause is applied in under-insurance scenarios for property and business interruption claims.

3Memorize the core provisions of the Insurance Act 2021 (Act 1061), specifically regarding NIC regulations, local reinsurance requirements, and solvency margins.

4Learn to distinguish between proportional reinsurance (Quota Share, Surplus) and non-proportional reinsurance (Excess of Loss, Stop Loss) calculation bases.

5Focus on the legal distinctions between claims-made and occurrence liability policies, retroactivity, and extended reporting periods.

6Practice calculations for Gross Profit and indemnity periods under Business Interruption policies.

Frequently Asked Questions

What is the CIIG Diploma in Insurance?

The CIIG Diploma in Insurance is an intermediate professional qualification awarded by the Chartered Insurance Institute of Ghana in collaboration with the Ghana Insurance College (GIC). It builds on the Certificate level to provide technical knowledge required for supervisory and managerial roles in the insurance industry.

How many modules or exams are required for the CIIG Diploma?

The qualification is modular, consisting of key technical subjects including Insurance Law, Insurance Business and Finance, Quantitative Methods (Statistics), and various specialized product lines (Commercial Property, Liability, Reinsurance). Each module has its own 3-hour examination.

What is the passing score for the CIIG Diploma exams?

The passing score for each module of the CIIG Diploma is 60%. Candidates must pass all required modules to be awarded the Diploma in Insurance.

Are there mathematical or statistical questions on the CIIG Diploma exam?

Yes, the Quantitative Methods and Statistics section covers basic statistical calculations, probability, time value of money, compound interest, annuities, and basic actuarial concepts relevant to premium pricing and claims reserving.

How does the Insurance Act 2021 (Act 1061) impact the Diploma syllabus?

Act 1061 governs all aspects of the syllabus, particularly regarding new solvency and capital requirements for insurers, strict enforcement of the 'No Premium, No Cover' rule (Section 85), mandatory local reinsurance retention, and compulsory classes of commercial property and public liability insurances.

How should I prepare for the CIIG Diploma exams?

It is recommended to attend lectures at the Ghana Insurance College or study the official CIIG course packs. Supplement your learning by practicing realistic multiple-choice questions on law, practice, quantitative methods, and specialized lines, paying close attention to explanations for wrong options.