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| Section | Weight | Objectives |
|---|---|---|
| UK Regulatory Framework | 12% | - Role of PRA and FCA - Authorisation and supervision - Insurance Distribution Directive (IDD) - ICOBS rules and conduct standards |
| Principle of Insurable Interest | 5% | - When insurable interest must exist - Application in different insurance types - Definition and legal basis |
| Principle of Indemnity | 7% | - Methods of providing indemnity - Exceptions to indemnity - Average clause application - Meaning and purpose of indemnity |
| Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Risk and Insurance | 10% | - Concepts of risk and types of risk - Features of insurable risk - Risk management and control methods |
| Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
| Contract and Agency Law | 9% | - Essentials of a valid contract - Application to insurance contracts - Law of agency and authority |
| Nature and Structure of Insurance | 14% | - Participants in the insurance market - Purpose and benefits of insurance - Market structures and distribution channels - Classification of insurance business |
| Principle of Utmost Good Faith | 11% | - Insurance Act 2015 provisions - Duty of disclosure and representation - Remedies for breach of duty |
| Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Proximate Cause | 2% | - Application to claims settlement - Definition and identification |
| Consumer Protection and Dispute Resolution | 8% | - Financial Services Compensation Scheme (FSCS) - Complaints handling procedures - Financial Ombudsman Service (FOS) - Consumer Insurance (Disclosure and Representations) Act 2012 |
1. The principle of indemnity is the
A) placing of the insured, after a loss, in the same financial position as enjoyed immediately before the loss.
B) placing of the insured, at expiry of a policy, in the same financial position as enjoyed at inception.
C) obligation of the insurer to provide a maximum sum insured or limit of liability.
D) obligation of the insurer to pay all valid claims according to the terms and conditions of the policy.
2. In order for a contract to be legally enforceable, what further action is required after offer and acceptance?
A) Exchange of consideration between the two parties.
B) Provision of written terms and conditions.
C) Delivery of goods or services concerned.
D) Witnessing by a third party.
3. The requirement 10 notify the fitting of a more powerful engine under a motor insurance policy is an example of a policy wording modifying the principle of
A) good faith.
B) contribution.
C) indemnity.
D) subrogation.
4. Under the provisions of the Financial Services Act 2012. what action, if any, can the regulator take against a firm that has committed money laundering offences?
A) Arbitration.
B) No action can be taken.
C) Civil proceedings.
D) Criminal prosecution.
5. Under common law. when does the insured's duly of fair presentation cease with regard to declarations that do NOT affect policy cover?
A) When a claim is submitted.
B) When a claim is paid.
C) When the policy contract lakes effect.
D) At renewal.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: D |
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