CII LM1 Exam 2025 Questions and
Answers 100% Pass
Fortuitous Event - ✔✔To be insurable - must be an accident or unexpected
Fundamental risk - ✔✔Large amounts of people effected
Speculative risk - ✔✔Non-insurance - gambling
Particular Risk - ✔✔Doesn't happen to everyone
Pure Risk - ✔✔The possibility exists- example travelling on a plane
Risk is assessed in two ways - ✔✔Frequency and severity
Subject matter of insurance - ✔✔The thing insured
Peril - ✔✔An event like a fire or break- in. what gives rise to a loss
What is insurance - ✔✔A risk transfer mechanism
Facultative insurance - ✔✔Reinsurance purchased by an insurer for a single risk or a
defined package of risks
Primary and secondary insurance - ✔✔Primary pays first = your medical bills
Secondary pays some or all costs left after the primary
Cedent - ✔✔A party who passes the financial obligation for potential losses to the
insurer
PNI Clubs - ✔✔Protection and indemnity
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 1
Answers 100% Pass
Fortuitous Event - ✔✔To be insurable - must be an accident or unexpected
Fundamental risk - ✔✔Large amounts of people effected
Speculative risk - ✔✔Non-insurance - gambling
Particular Risk - ✔✔Doesn't happen to everyone
Pure Risk - ✔✔The possibility exists- example travelling on a plane
Risk is assessed in two ways - ✔✔Frequency and severity
Subject matter of insurance - ✔✔The thing insured
Peril - ✔✔An event like a fire or break- in. what gives rise to a loss
What is insurance - ✔✔A risk transfer mechanism
Facultative insurance - ✔✔Reinsurance purchased by an insurer for a single risk or a
defined package of risks
Primary and secondary insurance - ✔✔Primary pays first = your medical bills
Secondary pays some or all costs left after the primary
Cedent - ✔✔A party who passes the financial obligation for potential losses to the
insurer
PNI Clubs - ✔✔Protection and indemnity
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 1
