Exams conducted by Chartered Insurance Institute London

Chartered insurance institute (CII) London is a professional body which designates insurance professionals or fresher willing to make a career in the vast and exciting world of insurance. A membership from CII ensures professional development and great networking with like-minded professionals which helps immensely in developing career potential.

A member can get insights from technical and market knowledge of the CII and practical support which can be a good means to enhance their career. There are 125k plus CII members show their complete commitment to high professional standards of ethics, subject matter knowledge and compliance. CII also provides various qualifications related to insurance and financial services industry which is prestigious and greatly valued in the market. In this article we are going to focus on the insurance qualification provided by the CII and how to pass exams to achieve the designations.

CII qualifications determine the difficulty level by attributed RQF level, higher the RQF level higher the qualification it demands from the candidate. The level of qualification obtained demonstrates the expertise and subject understanding of the designation holder in the workplace and amongst clients.

RQF Level 2: Builds a preliminary understanding of the insurance industry providing introduction to key topics in insurance and personal finance applicable to common situations. This level is apt for people new to the sector and working as a trainee or junior role. Passing this level is equivalent to general certificate of secondary education (GSCE).

RQF Level 3: Develops the understanding of principles, process and products in greater detail which can be applied in practice. This is ideal for junior and mid-level executives and educationally equivalent to A Level.

RQF Level 4: Build a deeper technical and applied understanding suitable for candidates wishing to acquire technical or specialist applied knowledge for technical roles. Education qualification level is first year of undergraduate study.

RQF Level 6: Develop the ability to apply the technical and specialized learning to complex real world client scenarios where all options must be analyzed for best decision making. This level is ideal for managers of technical functions like claim, underwriting and broking and education qualification level is of bachelor’s degree.

RQF Level 7: Develop the ability to use specialized skills, research and analysis to evaluate and propose to enhance the standards of working. This is ideal for leaders to take the sector to higher avenues proposing strategies and new ways of working benefiting the industry and customers. Education level equivalent is master’s degree.

Certificate in Insurance (Cert CII) RQF Level 3: Requires a minimum 40 CII credits. Candidates must study and pass IF1 Insurance, legal and regulatory (15 Credits) or LM1 London market insurance essentials and LM2 London market insurer’s principles and practice (25 Credits) or for non UK students preferred is WO1 Award in general insurance. Remaining credits can be accumulated by passing combination of below papers of 15 credits each.

• IF2 General insurance business
• IF3 Insurance Underwriting process
• IF4 Insurance claims handling process
• IF5 Motor Insurance Products
• IF6 Household insurance products
• IF7 Health care insurance products
• IF8 Packaged commercial insurances
• IF9 Customer service in Insurance
• I10 Insurance broking fundamentals
• I11 Introduction to risk management
• LM3 London market underwriting principles

Diploma in Insurance (Dip CII) RQF Level 4: Requires a minimum 120 credits with at least 90 in diploma level or above. Candidate must study M05 Insurance Law (25 Credits) with M92 Insurance business and finance (25 Credits) or 530 Economics and business (30 credits). Remaining credits can be obtained by passing combination of below exams, credits are mentioned in brackets.

• M21 Commercial insurance contract wording (20)
• M66 Delegated authority (25)
• M67 Fundamentals of risk management (25)
• M80 Underwriting Practice (20)
• M81 Insurance broking practice (20)
• M85 Claim practice (20)
• M86 Personal insurances (20)
• M90 Cargo and goods in transit insurances (25)
• M91 Aviation and space insurance (25)
• M92 Insurance business and finance (25)
• M93 Commercial property and business interruption insurances (25)
• M94 Motor insurance (25)
• M95 Liability Insurance (25)
• M97 Reinsurance (30)
• M98 Marine hull and associated liabilities (30)

Advanced diploma (ACII) RQF Level 6: Requires a minimum 290 credits with at least 150 at advanced diploma level and 55 at diploma level or above. Candidates must pass M05 Insurance Law (25 credits), one from M92 Insurance business and finance (25 credits) or 530 Economics and business (30 Credits), and one out of 820 Advanced claims (30 credits), 930 Advanced insurance broking (30 credits) or 960 advanced underwriting (30 credits). Rest credits can come from passing a combination of below exams.

• 945 Marketing Insurance products and services (30)
• 990 Insurance corporate management (30)
• 992 Risk management in Insurance (30)
• 995 Strategic Underwriting (30)
• 996 Strategic claims management (30)
• 997 Advanced risk financing and transfer (30)

In addition to the exams mentioned to be passed there are some written exams also conducted at diploma and advanced diploma level that provides credits for qualification. After achieving the ACII designation by passing exams and accumulating required credits, the candidate needs to apply to the CII for first fellowship and then the chartered designation. A work experience of 5 years or more is required for fellowship. Apart from general insurance stream as discussed in this article CII grants similar designation for finance qualifications as well, details of which can be found on the CII website. These exams are gaining popularity amongst Indian students for getting the respected CII designations.

 

Few sample Multiple choice question and answers:

 

IF1 – Insurance, Legal and Regulatory

 

1. Insurance Policy that pay a defined pre-agreed amount on the Insured events like accident of illness is called as:

 

1. Benefit Policy
2. Indemnity Policy
3. Compensation Policy
4. Speculative Policy

 

2. ABC Courier Company takes only third party motor insurance policy and assures money saved by not purchasing comprehensive motor insurance is utilized for the repair and replacement works of the vehicles in its fleet. This is an example of

 

1. Company Insurance
2. Private Insurance
3. Self-Insurance
4. Co-Insurance

 

 

3. Which of the following is not the example of direct marketing channel

 

1. Emails and Data base marketing
2. Promotional letters
3. Outdoor advertisement
4. A consultant

 

 

4. In which year, the Motor Insurer’s Bureau was founded in UK :

 

1. 1948
2. 1946
3. 1947
4. 1949

 

 

5. A non-penalty method of calculating the return premium of a canceled policy is called as –

 

1. Pro rata
2. Short period rate
3. Return premium
4. Short period scale

 

 

6. What is the consideration that the Insurance Company provides to the Insured under Insurance Contract –

 

1. Promise to refund the premium
2. Promise to take care of Insured’s Liabilities
3. Promise to pay if certain losses occur
4. None of the above

 

 

7. In Life Insurance the person of the entity who is entitled to receive the claim amount in an unfortunate event of the Insured’s demise is called:

 

1. a trustee
2. a bailee
3. a beneficiary
4. an agent

 

 

8. In which type of insurance presence of insurable interest is not necessary at the time of taking the policy?

 

1. Life Insurance
2. Motor Insurance
3. Marine Insurance
4. Pecuniary Insurance

 

 

 

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