This course examines the knowledge and understanding of the laws which form the background to the operations of insurance ,the knowledge and understanding of the system in which these laws operate or are administered. Successful passing of the CII Examination M05,which is compulsory, is a step towards the CII Diploma and leads to pathways in a variety of areas in insurance. The method of assessment is mixed assessment consisting of two components. One component is course assignment and one is a multiple choice examination.
Candidate who has knowledge of the fundamental principles of insurance as covered in Insurance, Legal and Regulatory (IF1) or equivalent examinations.
At the end of this unit, candidates should be able to:
- Understand the nature and sources of law and legal systems.
- Understand the concept of legal personality.
- Understand the principles of the law of tort and the characteristics of the main torts.
- Understand the law of contract.
- Understand the law of agency and its application on insurance.
- Understand the main principles governing the formation of insurance contracts.
- Understand how the terms of insurance contracts are classified and the effect of a breach of an insurance contract term may be used by the insured and other vitiating factors.
- Understand the main legal principles governing the making of an insurance claim.
- Understand how losses are measured and how the principles of indemnity applies to insurance claims.
- Pre and Post training test to measure knowledge and learning levels
- Engage trainees in exercises and group activities
- Evaluation form to be filled by trainees
Method of assessment:
Mixed assessment consisting of two components, both of which must be passed. One component is a coursework assignment and one is a multiple choice question (MCQ) examination. The details are:
- An online coursework assignment using RevisionMate consisting of 10 questions which sequentially follow the learning outcomes. This must be successfully completed within 6 months of enrolment; and
- An MCQ exam consisting of 40 standard format and 10 multiple response questions. 1 hour is allowed for this exam. This exam must be successfully passed within 18 months of enrolment.
Modula 1: Understand the nature and sources of English law and the concept of natural legal persons
1.1 Describe the classifications and characteristics of English law.
1.2 Describe the sources of English law.
1.3 Describe the structures and procedures of the courts.
1.4 Describe the status and capacity of natural legal persons.
1.5 Describe the main types of corporation and their characteristics.
1.6 Apply the nature and sources of English law and the concept of natural legal persons to practical situations.
Modula 2: Understand the principles of the law of torts and the characteristics of the main torts
2.1 Describe the nature and classification of torts.
2.2 Explain the law of negligence and the other main torts.
2.3 Explain how the law of torts apply to employers’ liability, products liability and occupiers’ liability.
2.4 Explain the main defences, remedies and limitations of actions in tort.
2.5 Apply the law of tort to practical situations.
Modula 3: Understand the law of contract
3.1 Explain the nature of contractual liability and classification of contracts.
3.2 Explain the formation of a contract.
3.3 Explain how contract terms are classified under the general law.
3.4 Explain defective contracts.
3.5 Explain the circumstances in which a contract may be discharged.
3.6 Explain the remedies for breach of contract.
3.7 Explain the doctrine of privity of contract.
3.8 Explain the assignment of contractual rights and duties.
3.9 Explain assignment in the context of insurance.
3.10 Apply the law of contract to practical situations.
Modula 4: Understand the law of agency and its application to insurance
4.1 Explain the nature of agency and how an agency relationship can be created.
4.2 Explain the relationships between agents, principals and third parties.
4.3 Explain the nature of an agent’s rights, responsibilities, authority and duties.
4.4 Explain the termination of agency and its effects.
4.5 Explain how the principles of agency law apply to insurance.
4.6 Apply the principles of agency law to practical situations.
Modula 5: Understand the main principles governing the formation of insurance contracts
5.1 Explain how the principles of contract law apply to the formation of insurance contracts.
5.2 Explain the concept and key elements of insurable interest.
5.3 Explain how the law of insurable interest applies to the main classes of insurance.
5.4 Explain the duty of fair presentation in non-consumer insurance.
5.5 Explain the effects of breach of the duty of fair presentation in non-consumer insurance.
5.6 Explain the duty to take reasonable care not to make a misrepresentation in consumer insurance.
5.7 Explain the effects of breach of the duty to take reasonable care not to make a misrepresentation in consumer insurance.
5.8 Apply the main principles governing the formation of insurance contracts to practical situations.
Modula 6: Understand the classification and interpretation of insurance contract terms, the effects of their breach and other vitiating factors
6.1 Explain the classification and interpretation of insurance contract terms.
6.2 Explain how warranties and conditions are formed in insurance contracts.
6.3 Explain the effect of breach of warranty or condition.
6.4 Explain how illegality arises in insurance contracts.
6.5 Apply the classification and interpretation of insurance contract terms to practical situations.
Modula 7: Understand the main legal principles governing the making of an insurance claim
7.1 Describe the parties who can claim on or benefit from an insurance contract.
7.2 Explain the rules governing notice and proof of loss.
7.3 Explain the insured’s contractual duty to mitigate or prevent an insured loss.
7.4 Explain the doctrine of proximate cause.
7.5 Apply the main legal principles governing the making of an insurance claim to practical situations.
Modula 8: Understand how losses are measured and how the principle of indemnity applies to insurance claims
8.1 Explain the principle of indemnity.
8.2 Explain the measure of indemnity in various classes of insurance.
8.3 Explain the factors which limit, reduce, extend or modify the principle of indemnity.
8.4 Explain the methods of providing indemnity.
8.5 Explain the doctrine of salvage and abandonment.
8.6 Explain the effect of claim payments on policy cover.
8.7 Apply how losses are measured and
Modula 9: Understand how the principles of subrogation and contribution apply to insurance claims
9.1 Explain the doctrine of subrogation in insurance.
9.2 Explain the source of subrogation rights and apply the law to practical situations.
9.3 Explain how subrogation rights may be modified or denied and apply the law to practical situations.
9.4 Explain the nature of double insurance and operation of contribution.
9.5 Explain methods of ascertaining the basis of contribution.
9.6 Apply the principle of contribution to the main lines of insurance and to practical situations.
9.7 Explain the effect of market agreements on rights of contribution.