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| Section | Objectives |
|---|---|
| Topic 1: Professional and Ethical Standards | - Understand the CII Code of Ethics and apply principles to non-complex scenarios |
| Topic 2: Principles of Contract and Agency | - Understand contract and agency - Understand the principle of insurable interest |
| Topic 3: Regulation and Legal Requirements | - Understand main regulatory and legal requirements applicable to insurance business - Know methods of preventing, handling and resolving consumer complaints - Understand consumer protection and dispute resolution |
| Topic 4: Insurance Fundamentals | - Understand the main features of insurance - Know the structure and main features of the insurance market |
| Topic 5: Risk and Risk Management | - Apply main features of risk and risk management to scenarios - Understand the nature and main features of risk within the insurance environment |
| Topic 6: Key Insurance Principles | - Understand the doctrine of proximate cause - Understand the principles of contribution and subrogation - Understand the principle of indemnity - Understand the principle of good faith |
1. A firm of insurance brokers holds client records on an index card system and does NOT intend to computerise this information. In what circumstances, if any, will these records be covered by the Data Protection Act 2018?
A) In no circumstances.
B) Only if the records include details of race.
C) Only if the records include dates of birth.
D) In all circumstances.
2. If a proposer has failed to fully answer a question on a proposal form, the insurer is deemed to have waived its rights to this information because it
A) did not request further information.
B) has statistics on similar risks.
C) does not have the right to ask the proposer for more information.
D) should be able to underwrite the risk based on the information already provided.
3. The Financial Services Compensation Scheme was established to help policyholders in the event of
A) fraud perpetrated by an insurance broker.
B) the repudiation of liability by an insurer.
C) the financial failure of an insurance company.
D) unreasonable policy terms and conditions.
4. In accordance with the principle of good faith, which facts must a potential policyholder disclose to the insurer when applying for insurance?
A) Any facts which are considered material to the risk.
B) Only those facts considered likely to reduce the cost of cover
C) Any facts of law.
D) Any facts which are in the public domain.
5. 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) contribution.
B) good faith.
C) subrogation.
D) indemnity.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: B |
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