Bulgarian Insurance Broker Qualification Exam study guide
Bulgarian Insurance Broker Qualification Exam · Work through your exam, one topic at a time.
The Bulgarian insurance broker qualification is the credential that demonstrates the professional knowledge required to work as an insurance broker or intermediary in Bulgaria under the Insurance Code, with the Financial Supervision Commission (КФН) acting as the competent supervisory authority. It is aimed at people entering insurance distribution - brokers, agents, and staff who advise on or sell insurance products - as well as experienced practitioners who need to formalise their standing. The Bulgarian Insurance Broker Qualification Exam study guide has 8 sections and about 2,480 words.
01Legal and Regulatory Framework of Insurance and Intermediation
Bulgarian insurance law is codified in the Insurance Code (Кодекс за застраховането, KZ), which transposes the Solvency II and Insurance Distribution Directive frameworks. A candidate must be able to separate three layers: (a) the Insurance Code - licensing, capital, contract rules, intermediation; (b) subordinate ordinances of the Financial Supervision Commission (КФН/FSC) - e.g.
363 words, about 2 min02Insurance Contract Law: Conclusion, Content, Rights, Obligations and Termination
The insurance contract is consensual but must be evidenced in writing; the insurer issues a policy and, where relevant, general and special conditions that form part of the contract. Key content: parties, insured risk, sum insured/sum assured, premium, term, exclusions.
327 words, about 2 min03General Principles of Insurance: Risk, Insurable Interest, Indemnity, Subrogation, Sum Insured and Sums Assured
Insurable interest must exist at inception (and for life, at inception and on the insured’s consent). Indemnity means the insured is restored to the pre-loss financial position, no better - this underpins underinsurance (proportional payment), overinsurance (excess is void), and subrogation .
316 words, about 2 min04Non-Life Insurance Products and Coverages
Property (fire, allied perils, business interruption) covers damage to insured property; liability covers legal liability to third parties (general, product, professional, employer’s); motor splits into Motor Third-Party Liability (MTPL, mandatory) and casco (own-damage, voluntary); accident pays fixed benefits for bodily injury; health reimburses or provides services; transport (cargo and hull) uses Incoterms and institute cargo clauses; agricultural covers crops, livestock and yields, often with index or weather triggers. MTPL is compulsory, covers bodily injury and property damage to third parties, and is supervised for tariffs and claims handling; the Guarantee Fund handles uninsured/untraced drivers and insolvent insurers.
270 words, about 1 min05Life Insurance Products and Coverages
Risk life (term) pays a sum assured only on death within the term - no savings element. Endowment/savings pays on survival or death, combining protection and savings.
299 words, about 1 min06Insurance Intermediation: Broker and Agent Roles, Duties, Conflicts of Interest, Remuneration and Disclosure
An agent acts for one or more insurers and may bind them; a broker acts for the client, advises independently, and must present a fair analysis of the market (or disclose the basis of selection). Both must be FSC-registered, meet professional-qualification requirements, hold professional indemnity cover, and act honestly, fairly and professionally in the client’s best interest.
305 words, about 2 min07AML, Counter-Terrorist Financing and Sanctions Compliance for Insurance Intermediaries
Intermediaries are obliged entities under the Anti-Money-Laundering Measures Act (Закон за мерките срещу изпирането на пари, ZMIPP), which transposes the EU AML Directives. They must apply customer due diligence (CDD) , enhanced due diligence (EDD) for high-risk cases and PEPs , and simplified due diligence only where risk is demonstrably low.
315 words, about 2 min08Consumer Protection, Data Protection and Professional Ethics in Insurance Distribution
Insurance distribution is subject to the Consumer Protection Act and the Insurance Code’s conduct rules: fair treatment , clear pre-contract information (IPID, PRIIPs KID for investment products), demands-and-needs assessment, transparent complaints handling, and the 14-day cooling-off right for life and distance contracts. Unfair commercial practices and aggressive selling are prohibited; the FSC supervises market conduct.
285 words, about 1 min