LM1 – CII CERTIFICATION SCRIPT 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
● Functions of an underwriter. Answer: Assess the risk being presented
● Subscription Market. Answer: More than one insurer participated in the same risk, each
taking a fixed percentage
● Characteristics of a good lead underwriter. Answer: Put together an appealing quotation
for the client
● Following market underwriters. Answer: Not deemed the leader underwriter
● Multiple placements. Answer: Follow markets may agree to slightly different terms and
conditions e.g the premium
● Slip leader. Answer: The broker may have gone to see a London Market leader in either
the Lloyd's or the company market
● Bureau leader. Answer: If the slip leader is from a company then the first LLOYD's
underwriter on the slip is called the bureau leader for Lloyds and the slip leader is also the
bureau leader for the company market
● Identifying agreement parties for claims. Answer: As with risk changes, the London
Market has in built claims handling agreements which seek to streamline the process.
● Principal and agent. Answer: 'Agent' is one who is authorised to act on behalf of someone
else 'the principal' - the client is the principal, the broker is the agent and the insurer is the
third party.
SOLUTIONS GRADED A+
● Functions of an underwriter. Answer: Assess the risk being presented
● Subscription Market. Answer: More than one insurer participated in the same risk, each
taking a fixed percentage
● Characteristics of a good lead underwriter. Answer: Put together an appealing quotation
for the client
● Following market underwriters. Answer: Not deemed the leader underwriter
● Multiple placements. Answer: Follow markets may agree to slightly different terms and
conditions e.g the premium
● Slip leader. Answer: The broker may have gone to see a London Market leader in either
the Lloyd's or the company market
● Bureau leader. Answer: If the slip leader is from a company then the first LLOYD's
underwriter on the slip is called the bureau leader for Lloyds and the slip leader is also the
bureau leader for the company market
● Identifying agreement parties for claims. Answer: As with risk changes, the London
Market has in built claims handling agreements which seek to streamline the process.
● Principal and agent. Answer: 'Agent' is one who is authorised to act on behalf of someone
else 'the principal' - the client is the principal, the broker is the agent and the insurer is the
third party.
