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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Consumer Protection and Dispute Resolution | 8% | - Complaints handling procedures - Financial Ombudsman Service (FOS) - Financial Services Compensation Scheme (FSCS) - Consumer Insurance (Disclosure and Representations) Act 2012 |
| Topic 2: Proximate Cause | 2% | - Definition and identification - Application to claims settlement |
| Topic 3: Risk and Insurance | 10% | - Risk management and control methods - Features of insurable risk - Concepts of risk and types of risk |
| Topic 4: Compulsory Insurance and Legislation | 3% | - Statutory requirements for compulsory insurance - Key relevant statutes |
| Topic 5: Principle of Insurable Interest | 5% | - Definition and legal basis - When insurable interest must exist - Application in different insurance types |
| Topic 6: Contribution and Subrogation | 6% | - Right of contribution between insurers - Right of subrogation and its limits |
| Topic 7: Nature and Structure of Insurance | 14% | - Purpose and benefits of insurance - Participants in the insurance market - Classification of insurance business - Market structures and distribution channels |
| Topic 8: Principle of Utmost Good Faith | 11% | - Duty of disclosure and representation - Remedies for breach of duty - Insurance Act 2015 provisions |
| Topic 9: Principle of Indemnity | 7% | - Meaning and purpose of indemnity - Average clause application - Methods of providing indemnity - Exceptions to indemnity |
| Topic 10: UK Regulatory Framework | 12% | - Authorisation and supervision - Insurance Distribution Directive (IDD) - Role of PRA and FCA - ICOBS rules and conduct standards |
| Topic 11: Contract and Agency Law | 9% | - Application to insurance contracts - Law of agency and authority - Essentials of a valid contract |
| Topic 12: Ethics and Professional Standards | 3% | - Application to insurance scenarios - CII Code of Ethics |
Barbara owns a factory employing 20 people. What insurance is she required to hold by law?
Correct Answer: A 🗳️
A survey of a car repairers reveals a spray booth exists by an unguarded paraffin space beater. Also, a day's supply of paint is kept within the building and waste is removed daily from a metal bin. What will the underwriter perceive as the main physical hazard?
Correct Answer: A 🗳️
To whom, if anyone, can an agent normally delegate the responsibility imposed on net under an agency agreement?
Correct Answer: D 🗳️
Bye-laws are passed at the Lloyd's Market by the
Correct Answer: C 🗳️
A broker collects premiums on behalf of an insurer and subsequently goes into liquidation. Various premiums are outstanding to the insurer, despite policyholders having paid the broker What action is the insurer most likely to take?
Correct Answer: C 🗳️
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