Last Updated: Jul 19, 2026
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| Section | Objectives |
|---|---|
| Topic 1: Regulation and Legal Requirements | - Know methods of preventing, handling and resolving consumer complaints - Understand main regulatory and legal requirements applicable to insurance business - Understand consumer protection and dispute resolution |
| Topic 2: Professional and Ethical Standards | - Understand the CII Code of Ethics and apply principles to non-complex scenarios |
| Topic 3: Principles of Contract and Agency | - Understand the principle of insurable interest - Understand contract and agency |
| Topic 4: Risk and Risk Management | - Apply main features of risk and risk management to scenarios - Understand the nature and main features of risk within the insurance environment |
| Topic 5: Insurance Fundamentals | - Know the structure and main features of the insurance market - Understand the main features of insurance |
| Topic 6: Key Insurance Principles | - Understand the principle of indemnity - Understand the principle of good faith - Understand the doctrine of proximate cause - Understand the principles of contribution and subrogation |
1. Joe is a broker who has become a Fellow of the Chattered Insurance Institute. If he would like to use the title Chartered Insurance Broker, what must he do. if anything?
A) He must apply to the Prudential Regulation Authority.
B) He must apply to the British Insurance Brokers' Association.
C) He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
D) He must apply to the Chartered Insurance Institute.
2. The principle of indemnity is the
A) placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
B) obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
C) obligation of the insurer to provide a maximum sum insured or limit of liability.
D) placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
3. To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?
A) To anyone able to fulfil the duties.
B) To suitably qualified individuals only.
C) The agent cannot delegate her responsibility.
D) To suitably experienced individuals only.
4. Insurers and intermediaries are required to adhere to solvency requirements as stipulated by the
A) European Union.
B) Financial Ombudsman Service.
C) Association of British Insurers.
D) Financial Services Compensation Scheme.
5. A Terms of Business Agreement between an insurer and an intermediary sets out the
A) agreed claims procedures as stated in the Insurance: Conduct of Business sourcebook (ICOBS).
B) criteria to apply when reporting suspicious incidents to the Money Laundering Reporting Officer.
C) framework for the commercial relationship, which defines and allocates the respective responsibilities and rights to each party.
D) disaster recovery procedures to apply if there is a major disaster affecting the insurer.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: C |
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