Last Updated: Oct 06, 2026
No. of Questions: 100 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Principle of Utmost Good Faith | 11% | - Insurance Act 2015 provisions - Duty of disclosure and representation - Remedies for breach of duty |
| Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Consumer Protection and Dispute Resolution | 8% | - Complaints handling procedures - Financial Services Compensation Scheme (FSCS) - Consumer Insurance (Disclosure and Representations) Act 2012 - Financial Ombudsman Service (FOS) |
| Principle of Insurable Interest | 5% | - Application in different insurance types - Definition and legal basis - When insurable interest must exist |
| Nature and Structure of Insurance | 14% | - Purpose and benefits of insurance - Market structures and distribution channels - Classification of insurance business - Participants in the insurance market |
| Ethics and Professional Standards | 3% | - CII Code of Ethics - Application to insurance scenarios |
| Risk and Insurance | 10% | - Concepts of risk and types of risk - Risk management and control methods - Features of insurable risk |
| Principle of Indemnity | 7% | - Exceptions to indemnity - Average clause application - Meaning and purpose of indemnity - Methods of providing indemnity |
| Proximate Cause | 2% | - Application to claims settlement - Definition and identification |
| Contract and Agency Law | 9% | - Application to insurance contracts - Law of agency and authority - Essentials of a valid contract |
| UK Regulatory Framework | 12% | - Insurance Distribution Directive (IDD) - ICOBS rules and conduct standards - Role of PRA and FCA - Authorisation and supervision |
Self-insurance arises when a
Correct Answer: C 🗳️
A house slatls to have subsidence problems due to the negligence of a cable-laying company. The owner of the house claims under his household buildings insurance policy. Which principle allows the insurer to recover from the cable-laying company?
Correct Answer: A 🗳️
An owner of a building reduces its sum insured from £1,000.000 lo £500.000 to save premiums. A Tire causes
£300,000 damage to the building. If the building has a reinstatement value of £750,000 and average is applied, how much will the insured receive in settlement?
Correct Answer: A 🗳️
The main function of an insurance broker is to
Correct Answer: B 🗳️
John wishes to insure his friend's house. Why would an insurer refuse to provide a quotation?
Correct Answer: D 🗳️
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