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| Section | Weight | Objectives |
|---|---|---|
| Consumer Protection and Dispute Resolution | 8% | - Financial Services Compensation Scheme (FSCS) - Consumer Insurance (Disclosure and Representations) Act 2012 - Complaints handling procedures - Financial Ombudsman Service (FOS) |
| Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Nature and Structure of Insurance | 14% | - Purpose and benefits of insurance - Market structures and distribution channels - Classification of insurance business - Participants in the insurance market |
| Contract and Agency Law | 9% | - Law of agency and authority - Application to insurance contracts - Essentials of a valid contract |
| 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% | - Definition and legal basis - When insurable interest must exist - Application in different insurance types |
| Ethics and Professional Standards | 3% | - CII Code of Ethics - Application to insurance scenarios |
| Principle of Indemnity | 7% | - Methods of providing indemnity - Meaning and purpose of indemnity - Average clause application - Exceptions to indemnity |
| Risk and Insurance | 10% | - Features of insurable risk - Risk management and control methods - Concepts of risk and types of risk |
| Contribution and Subrogation | 6% | - Right of subrogation and its limits - Right of contribution between insurers |
| UK Regulatory Framework | 12% | - Authorisation and supervision - Insurance Distribution Directive (IDD) - Role of PRA and FCA - ICOBS rules and conduct standards |
| Compulsory Insurance and Legislation | 3% | - Key relevant statutes - Statutory requirements for compulsory insurance |
1. Reinsurance is usually purchased by the
A) intermediary.
B) insured.
C) insurer.
D) regulator.
2. What type of risk is a widespread natural disaster?
A) A speculative risk.
B) A particular risk.
C) A pure risk.
D) A fundamental risk.
3. How would an insurer's portfolio of motor claims be shown in terms of frequency and severity?
A) High frequency, high seventy.
B) Low frequency, low seventy.
C) High frequency, low severity.
D) Low frequency, high seventy.
4. Sunita suffers a loss and makes a claim under her household contents insurance policy. When must insurable interest exist for her claim to be valid?
A) At policy inception and at the time of the loss.
B) At policy inception only.
C) At the time of the loss only.
D) At the time of the proposal.
5. What type of reduction is sometimes applied to the replacement cost of an item under an insurance policy claim in order to reflect the application of indemnity?
A) An excess.
B) Loss of interest.
C) Brokerage.
D) Wear and tear.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: D |
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