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| Section | Weight | Objectives |
|---|---|---|
| Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Consumer Protection and Dispute Resolution | 8% | - Financial Ombudsman Service (FOS) - Complaints handling procedures - Consumer Insurance (Disclosure and Representations) Act 2012 - Financial Services Compensation Scheme (FSCS) |
| Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Nature and Structure of Insurance | 14% | - Market structures and distribution channels - Purpose and benefits of insurance - Participants in the insurance market - Classification of insurance business |
| Contribution and Subrogation | 6% | - Right of subrogation and its limits - Right of contribution between insurers |
| UK Regulatory Framework | 12% | - Insurance Distribution Directive (IDD) - Authorisation and supervision - Role of PRA and FCA - ICOBS rules and conduct standards |
| Principle of Utmost Good Faith | 11% | - Insurance Act 2015 provisions - Duty of disclosure and representation - Remedies for breach of duty |
| Principle of Insurable Interest | 5% | - When insurable interest must exist - Definition and legal basis - Application in different insurance types |
| Contract and Agency Law | 9% | - Application to insurance contracts - Law of agency and authority - Essentials of a valid contract |
| Proximate Cause | 2% | - Application to claims settlement - Definition and identification |
| Principle of Indemnity | 7% | - Average clause application - Exceptions to indemnity - Meaning and purpose of indemnity - Methods of providing indemnity |
| Risk and Insurance | 10% | - Concepts of risk and types of risk - Risk management and control methods - Features of insurable risk |
1. How does insurable interest arise, if at all. when an insurer arranges reinsurance?
A) Insurable interest is created by statute.
B) Insurable interest does not arise.
C) The insurer is considered to have insurable interest by virtue of its liability to pay claims.
D) The policyholder is considered to have assigned the insurable interest to the insurer.
2. The accident record for a printworks show that for every one major injury, there have been 30 minor incidents and 900 non-injury events reported. How would major work injuries be classified in relation to frequency and severity?
A) High frequency, low severity.
B) Low frequency, high severity.
C) High frequency, high severity.
D) Low frequency, low severity.
3. Joel buys a house in a flood plain, but it has NOT flooded for 10 years. In purchasing insurance, Joel is managing what element of risk?
A) Statutory requirements.
B) Frequency.
C) Uncertainty.
D) Certainty.
4. If an insured signs an agreement with a hold harmless clause, this may prevent the insurer from
A) reinsuring the risk.
B) increasing the premium.
C) pursuing subrogation rights.
D) disclosing details to a third party.
5. What legally recognised financial relationship must exist, between a policyholder and the items being insured, to constitute a valid household contents insurance policy?
A) Risk indemnity.
B) Vicarious liability.
C) Delegated authority.
D) Insurable interest.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |
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