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100+ Free CII 930 Practice Questions

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Key Facts: CII 930 Exam

30 Credits

CII Unit Credits

CII Advanced Diploma Specifications

60 Hours

Recommended Study Time

CII 930 Syllabus

50%

Coursework Pass Mark

CII Assessment Regulations

CII 930 is a Level 6 Advanced Diploma unit (30 credits) focused on insurance broking strategy, FCA regulation (ICOBS/CASS 5), client risk profiling, and London market placement. The 100 local MCQs serve as a self-study adaptation for key concepts.

Sample CII 930 Practice Questions

Try these sample questions to test your CII 930 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is a primary strategic driver for an independent commercial insurance broker adopting a fee-for-service model instead of traditional brokerage commission?
A.To eliminate all FCA regulatory oversight regarding client money under CASS 5.
B.To align compensation directly with advisory value and eliminate revenue volatility tied to soft underwriting market cycles.
C.To automatically transfer client claims liability directly onto the broker's balance sheet.
D.To guarantee that insurers will provide 100% indemnity without policy excesses.
Explanation: Fee-for-service compensation decouples a broker's revenue from soft market rate declines, ensuring revenue reflects advisory time and expertise rather than fluctuating premium volumes.
2An insurance broking firm earns £800,000 in gross brokerage commission. It pays out 35% in sub-broker commissions and incurs £320,000 in direct operating expenses. What is the firm's net operating profit before tax?
A.£200,000
B.£520,000
C.£480,000
D.£160,000
Explanation: Gross brokerage = £800,000. Sub-broker payout = 35% of £800,000 = £280,000. Net brokerage revenue = £800,000 - £280,000 = £520,000. Subtract operating expenses of £320,000: £520,000 - £320,000 = £200,000.
3In strategic broking management, how does a Managing General Agent (MGA) model differ fundamentally from a traditional independent retail broker model?
A.An MGA acts strictly as a representative of the policyholder without insurer delegation.
B.An MGA holds delegated underwriting authority and claims handling powers from insurers, operating essentially as an underwriting agent.
C.An MGA is exempt from FCA conduct rules and ICOBS disclosure requirements.
D.An MGA cannot place business within Lloyd's or the London market.
Explanation: Unlike retail brokers who act primarily as agents of the insured, MGAs hold delegated underwriting authority from insurer principals to bind risks, set terms, and manage claims.
4A corporate broker handles a portfolio generating £5,000,000 in gross written premium (GWP) at an average commission rate of 15%. If the client transitions to a fee agreement of £600,000 per year and the broker remits net premiums to insurers, what is the net revenue change for the broker?
A.Decrease of £150,000
B.Increase of £150,000
C.Increase of £60,000
D.No change in total revenue
Explanation: Original commission revenue = 15% of £5,000,000 = £750,000. New fee revenue = £600,000. Net revenue change = £600,000 - £750,000 = decrease of £150,000.
5What is the primary risk associated with a broker relying heavily on contingent commissions (profit shares) from underwriting market partners?
A.Inability to hold statutory trust client money accounts.
B.Potential conflict of interest between placement advice to clients and maximizing broker profit share.
C.Automatic revocation of Lloyd's broker accreditation.
D.Breach of UK Solvency II capital requirements for insurers.
Explanation: Contingent commissions create an inherent conflict of interest where a broker might steer clients to insurers offering higher volume or profit bonuses rather than best client outcomes.
6Which strategic metric best measures a broking firm's operational efficiency in servicing client accounts relative to staff costs?
A.Combined Operating Ratio (COR)
B.Revenue per Full-Time Equivalent (FTE) Employee
C.Solvency Capital Requirement (SCR) coverage
D.Loss ratio of placed policies
Explanation: Revenue per FTE is a standard broking KPI measuring human capital productivity and operational efficiency across account handling and advisory teams.
7A commercial broker reports £12,000,000 in total turnover, incurring £7,200,000 in staff salaries and benefits, and £2,400,000 in operational overheads. What is the broker's operating profit margin?
A.20%
B.40%
C.60%
D.15%
Explanation: Total expenses = £7,200,000 + £2,400,000 = £9,600,000. Operating profit = £12,000,000 - £9,600,000 = £2,400,000. Operating profit margin = £2,400,000 / £12,000,000 = 0.20 or 20%.
8In commercial broking, what does the term 'consolidation' refer to in market structure terms?
A.Merging property and casualty risks into a single policy form.
B.The acquisition and merger of smaller independent regional brokers by large national or global broker groups.
C.Transferring all risk placement exclusively into Lloyd's syndicates.
D.Combining client money trust accounts with firm trading bank accounts.
Explanation: Broking consolidation describes M&A activity where private equity-backed consolidators or major broker networks acquire independent regional brokerages to gain scale.
9What is the primary role of a wholesale insurance broker in market distribution?
A.Directly negotiating personal lines coverage with retail individual policyholders.
B.Acting as an intermediary between retail brokers and specialist underwriting markets, such as Lloyd's or excess lines carriers.
C.Providing statutory audit services for insurance company solvency returns.
D.Regulating insurance brokers on behalf of the Financial Conduct Authority.
Explanation: Wholesale brokers do not deal directly with policyholders; they provide retail brokers access to specialized underwriting markets, capacity, or niche product facilities.
10Broking Firm A acquires Broking Firm B for £10,000,000. Firm B generates £2,000,000 in EBITDA. What acquisition EBITDA multiple was paid by Firm A?
A.5.0x
B.2.0x
C.10.0x
D.0.2x
Explanation: EBITDA multiple = Purchase Price / EBITDA = £10,000,000 / £2,000,000 = 5.0x.

About the CII 930 Exam

The CII 930 Advanced Insurance Broking unit is a 30-credit Level 6 component of the CII Advanced Diploma in Insurance. It assesses strategic broking business models, commercial governance, FCA ICOBS & CASS 5 client money regulations, risk identification and profiling, and London market/Lloyd's placement mechanics. Disclosures: The 100 practice multiple-choice questions provided here are an English-language study adaptation created for practice and key concept self-testing, and do not replace required written coursework assignments or official CII assessment sittings.

Assessment

Level 6 unit evaluated officially via 3 written coursework assignments (10,000 words total). This 100-question practice set acts as a key concept self-testing adaptation across all 4 syllabus domains.

Time Limit

Self-paced

Passing Score

50%

Exam Fee

£260 - £360 (Chartered Insurance Institute (CII))

CII 930 Exam Content Outline

25%

Insurance Broking Strategy & Business Models

Broking business models, strategic growth, revenue models, corporate governance, digital transformation, and risk management.

25%

Regulatory Compliance, ICOBS, FCA & CASS

FCA regulatory framework, ICOBS disclosure, CASS 5 statutory vs non-statutory client money rules, TOBAs, and SM&CR.

25%

Client Relationship & Risk Profiling

Client risk identification, risk evaluation, risk transfer strategies, captive insurance advisory, and complex client servicing.

25%

Market Placement & Lloyd's / London Market

London market broking, Market Reform Contracts (MRC), Lloyd's accreditation, co-insurance, subscription placements, and leader rules.

How to Pass the CII 930 Exam

What You Need to Know

  • Passing score: 50%
  • Assessment: Level 6 unit evaluated officially via 3 written coursework assignments (10,000 words total). This 100-question practice set acts as a key concept self-testing adaptation across all 4 syllabus domains.
  • Time limit: Self-paced
  • Exam fee: £260 - £360

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CII 930 Study Tips from Top Performers

1Master the operational and regulatory differences between CASS 5 statutory trust accounts and non-statutory trust accounts.
2Understand FCA ICOBS requirements regarding client status, TOBA contents, fee disclosures, and conflict of interest management.
3Practice subscription market calculations, including leader/follower allocations, brokerage deductions, and gross-to-net premium reconciliations.

Frequently Asked Questions

What is the format of the official CII 930 assessment?

Official CII 930 assessment consists of written coursework assignments (3 assignments totaling 10,000 words). The pass mark for Level 6 coursework is 50%. The 100 practice questions provided on this platform are an English-language study adaptation created for concept revision and self-testing.

Does this practice question bank replace official CII coursework sittings?

No. These 100 local practice questions are an independent study adaptation for revising core syllabus concepts (ICOBS, CASS 5, broking models, London market practices) and do not replace required written coursework assignments or official CII sittings.

What calculation topics are tested in CII 930?

Calculations cover CASS 5 statutory vs non-statutory trust buffer requirements, client money segregation, brokerage commission vs fee calculations, IPT (Insurance Premium Tax), loss ratio and combined ratio calculations, and co-insurance subscription layer allocations.