CII IF1 - Insurance Legal and Regulatory (IF1) Exam

- Exam Code: IF1
- Exam Name: Insurance Legal and Regulatory (IF1) Exam
- Updated: Sep 05, 2025
- Q & A: 100 Questions and Answers
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1. Under the regulator's training and competency rules, a general insurance employee carrying out a non-WiFID business activity
A) for 20 years after the employee stops carrying out the activity.
B) indefinitely.
C) for 3 years after the employee stops carrying out the activity.
D) for 10 years after the employee stops carrying out the activity.
2. An agent, acting outside the terms of her agency agreement, binds her principal to a contract with a third party who has reason to believe that the agent can act in that capacity. On what basis, if al all, is the principal bound by the agent's actions?
A) Not at all.
B) Necessity.
C) Consent.
D) Apparent authority.
3. How do an insurer's subrogation rights differ, if at all, between a theft policy and a personal accident policy?
A) Subrogation rights do not apply under either policy.
B) Subrogation rights only apply under a theft policy.
C) Subrogation rights apply under both policies.
D) Subrogation rights only apply under a personal accident policy.
4. Michael, an insurance company employee, strongly suspects that a recent transaction involved money laundering but decides NOT to report his suspicions to anyone. How is this treated under the current Money Laundering Regulations?
A) It is a disciplinary offence under the Banking Code.
B) It is a disciplinary offence dealt with by the Money Laundering Joint Steering Committee.
C) It is a civil offence.
D) It is a criminal offence.
5. In accordance with the principle of good faith, which facts must a potential policyholder disclose to the insurer when applying for insurance?
A) Any facts which are considered material to the risk.
B) Any facts of law.
C) Only those facts considered likely to reduce the cost of cover
D) Any facts which are in the public domain.
Solutions:
Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: A |
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