LM1 – CII PRACTICE EXAMINATION 2026 QUESTIONS WITH
ANSWERS GRADED A+
● money laundering. Answer: maximum sentence is 14 years
● verification records. Answer: maximum amount of time to store is 5 years
● Class of Insurance most likely to have a waiting period?. Answer: Marine
● Companies established to manage the underwriting of one/more syndicates?.
Answer: Managing agent
● Serious breach of Lloyds/FCA rules?. Answer: Action usually taken by Lloyds and FCA
● How many high level principles, concerning placement with subscription markets
have been issued?. Answer: Five
● Body responsible for enforcement of data protection requirements?. Answer:
Information commissioners office
● Proportion of business written in London market is from UK based Insureds?.
Answer: 25 %
● Type of insurance covers risks of predetermined class of business?. Answer: Treaty
● Applying for insurance/paying premium is an example of which three stages of
money laundering?. Answer: Placement
● Within syndicates, underwriters are employed by?. Answer: Managing agent
● Organisation issued high level principles, concerning placement of business with
subscription markets?. Answer: BIPAR (European Federation of insurance and financial
intermediaries)
● Body responsible for identifying emerging risks?. Answer: Financial policy committee
● A new Lloyds insurance broker wishing to offer independent advice must receive
approval from which body?. Answer: FCA
, ● Body responsible for promoting interests of London market?. Answer: International
underwriting association of London
● Management structure and rules by which Lloyds are governed by which body?.
Answer: Acts of parliament
● Solvency II main purpose?. Answer: Make insurers more capable of withstanding shocks
● Maximum financial award, the financial ombudsman can make?. Answer: £375,000
● Corporate offence under money laundering?. Answer: Failing to prevent bribery
● Covered under midstream insurance?. Answer: Pipelines
● Surplus lines status for business in USA?. Answer: Local or admitted market cannot
accept the risk without asking first
● What organisation underwriters risks, issues policies documents and handles claims
on behalf of an insurer?. Answer: Managing general agent
● Which body is responsible for the implementation/admin of international sanctions
in effect in the UK?. Answer: HM treasury
● Death in service multiples?. Answer: two to four
● Which body maintains claims for Lloyds only?. Answer: Xchanging
● Number of members in the council of Lloyds?. Answer: 15
● insurer assesses/calculates the funds that need to be set aside?. Answer: Loss
reserving
● Benefit of law of large numbers?. Answer: assists insurers to make reliable claim
payment predictions
● How does a broker usually place complex risks within London market?. Answer:
Electronic placing systems and direct communication
● Toy has a safety issue?. Answer: Product recall insurance
● Which consumer does protection/indemnity clubs provide insurance for?. Answer:
Shipowners
ANSWERS GRADED A+
● money laundering. Answer: maximum sentence is 14 years
● verification records. Answer: maximum amount of time to store is 5 years
● Class of Insurance most likely to have a waiting period?. Answer: Marine
● Companies established to manage the underwriting of one/more syndicates?.
Answer: Managing agent
● Serious breach of Lloyds/FCA rules?. Answer: Action usually taken by Lloyds and FCA
● How many high level principles, concerning placement with subscription markets
have been issued?. Answer: Five
● Body responsible for enforcement of data protection requirements?. Answer:
Information commissioners office
● Proportion of business written in London market is from UK based Insureds?.
Answer: 25 %
● Type of insurance covers risks of predetermined class of business?. Answer: Treaty
● Applying for insurance/paying premium is an example of which three stages of
money laundering?. Answer: Placement
● Within syndicates, underwriters are employed by?. Answer: Managing agent
● Organisation issued high level principles, concerning placement of business with
subscription markets?. Answer: BIPAR (European Federation of insurance and financial
intermediaries)
● Body responsible for identifying emerging risks?. Answer: Financial policy committee
● A new Lloyds insurance broker wishing to offer independent advice must receive
approval from which body?. Answer: FCA
, ● Body responsible for promoting interests of London market?. Answer: International
underwriting association of London
● Management structure and rules by which Lloyds are governed by which body?.
Answer: Acts of parliament
● Solvency II main purpose?. Answer: Make insurers more capable of withstanding shocks
● Maximum financial award, the financial ombudsman can make?. Answer: £375,000
● Corporate offence under money laundering?. Answer: Failing to prevent bribery
● Covered under midstream insurance?. Answer: Pipelines
● Surplus lines status for business in USA?. Answer: Local or admitted market cannot
accept the risk without asking first
● What organisation underwriters risks, issues policies documents and handles claims
on behalf of an insurer?. Answer: Managing general agent
● Which body is responsible for the implementation/admin of international sanctions
in effect in the UK?. Answer: HM treasury
● Death in service multiples?. Answer: two to four
● Which body maintains claims for Lloyds only?. Answer: Xchanging
● Number of members in the council of Lloyds?. Answer: 15
● insurer assesses/calculates the funds that need to be set aside?. Answer: Loss
reserving
● Benefit of law of large numbers?. Answer: assists insurers to make reliable claim
payment predictions
● How does a broker usually place complex risks within London market?. Answer:
Electronic placing systems and direct communication
● Toy has a safety issue?. Answer: Product recall insurance
● Which consumer does protection/indemnity clubs provide insurance for?. Answer:
Shipowners
