Insurance, Legal and Regulatory (IF1)

We look at the concept of risk, the different types of risk and how insurance acts as a risk transfer mechanism. It explores which risks are insurable, the main classes of insurance, risk management and how risks are controlled. This is now a major focus for insurance firms.

It considers the structure of the insurance market and information flows between those who provide products and services to clients.

You will gain an understanding of the nature of insurance, the operation of the insurance market, and some of the legal principles that apply to insurance contracts. The legal aspects of insurance are considered in relation to English law although some contracts may be subject to other jurisdictions, especially if they are designed to provide cover for risks in overseas territories.

We look at statutory regulation in the UK, examining the regulatory bodies Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA). We also look at the rules that govern the activities of general insurance firms, including their conduct when selling and administering general insurance contracts.

We review consumer protection mechanisms and examine the roles of the Financial Services Compensation Scheme (FSCS) and Financial Ombudsman Service (FOS).

Finally, we look at the ethical standards which apply to individuals operating in general insurance.

Building a successful career in insurance
This course is for you if you work in insurance or aspire for a rewarding career in insurance. 
Insurance, Legal and Regulatory (IF1) counts towards achieving a Certificate in Insurance. It may also count towards the Diploma in Insurance and the Advanced Diploma in Insurance.

Summary of learning outcomes

1. Understand the nature and main features of risk within the insurance environment.
2. Know how to apply the main features of risk and risk management to a given set of circumstances.
3. Understand the main features of insurance.
4. Know the structure and main features of the insurance market.
5. Understand contract and agency.
6. Understand the principle of insurable interest.
7. Understand the principle of good faith.
8. Understand the doctrine of proximate cause and its application to non-complex claims.
9. Understand the principle of indemnity and how this is applied to contracts of insurance.
10. Understand the principles of contribution and subrogation.
11. Understand the main regulatory and legal requirements applicable to the transaction of insurance business
12. Understand consumer protection and dispute resolution.
13. Know the main methods of preventing, handling and resolving consumer complaints.
14. Understand the CII Code of Ethics and be able to apply the principles to non-complex scenarios.

Assessment:

• 2-hour exam
• 100 multiple choice questions
• The standard pass mark is 70% (for more information on standard pass marks please see here)
• The 2024 pass rate for this unit was 75.0%

Units treated as equivalent

Due to the extent of syllabus overlap, certain combinations of current and withdrawn units will result in only one award of credits.

If a withdrawn equivalent is held you may not need to complete a current unit in order to satisfy a qualification's completion rules. Clarification should always be sought from CII Customer Service.

Find out more about credit awards for equivalent units

Course delivery

Instructions on accessing your course on RevisionMate will be sent to your registered email address. This is typically within two working days of your order being placed, but may be longer, particularly if payment is made by bank transfer or the unit is available as a pre-order.

Study material - editions available

2025 edition (applicable to exams sat 01 Jan 25 to 31 Dec 25)

Revision aids available 

The revision aids available for this unit are listed below. Find out more details. 

• Revision Extra
• Key Facts Booklet
• Knowledge Checker
• E-learn

Note for purchasing revision aids: please make sure you do not already have the revision aid(s) as part of any Enrolment plus purchase.