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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Principle of Insurable Interest | 5% | - Application in different insurance types - When insurable interest must exist - Definition and legal basis |
| Topic 2: 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 |
| Topic 3: Consumer Protection and Dispute Resolution | 8% | - Consumer Insurance (Disclosure and Representations) Act 2012 - Financial Ombudsman Service (FOS) - Complaints handling procedures - Financial Services Compensation Scheme (FSCS) |
| Topic 4: Contract and Agency Law | 9% | - Law of agency and authority - Essentials of a valid contract - Application to insurance contracts |
| Topic 5: Compulsory Insurance and Legislation | 3% | - Key relevant statutes - Statutory requirements for compulsory insurance |
| Topic 6: UK Regulatory Framework | 12% | - Insurance Distribution Directive (IDD) - Authorisation and supervision - ICOBS rules and conduct standards - Role of PRA and FCA |
| Topic 7: Principle of Utmost Good Faith | 11% | - Insurance Act 2015 provisions - Remedies for breach of duty - Duty of disclosure and representation |
| Topic 8: Risk and Insurance | 10% | - Features of insurable risk - Risk management and control methods - Concepts of risk and types of risk |
| Topic 9: Principle of Indemnity | 7% | - Exceptions to indemnity - Methods of providing indemnity - Meaning and purpose of indemnity - Average clause application |
| Topic 10: Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Topic 11: Proximate Cause | 2% | - Application to claims settlement - Definition and identification |
| Topic 12: Ethics and Professional Standards | 3% | - CII Code of Ethics - Application to insurance scenarios |
1. 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) Criminal prosecution.
D) Civil proceedings.
2. When should a direct insurer advise a policyholder in writing of its complaints-handling procedure, to comply with regulatory requirements?
A) Within 30 days of cover being incepted.
B) At the lime of a claim.
C) Within 7 days of a complaint being made.
D) At the time of the sale or immediately afterwards.
3. Joe is a broker who has become a Fellow of the Chattered Insurance Institute. If he would like to use the title Chartered Insurance Broker, what must he do. if anything?
A) He must apply to the British Insurance Brokers' Association.
B) He must apply to the Chartered Insurance Institute.
C) He cannot use the name as he would be in breach of the Insurance: Conduct of Business sourcebook (ICOBS).
D) He must apply to the Prudential Regulation Authority.
4. Under the Consumer Rights Act 2015. a clause in a household insurance policy may be considered unfair if it
A) discriminates against one of the persons insured on the grounds of nationality, gender or sexual orientation only.
B) causes a significant imbalance in the parties' rights and obligations arising under the contract, to the disadvantage of the insured.
C) imposes unreasonable obligations on the insurer in terms of costs or expenses that must be paid in addition to the amount of any loss.
D) allows any party other than the insured to enforce the insurer's obligations under the policy.
5. 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.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: D |
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