CII LM3 study plan

Map the London Market's three core components - Lloyd's, the company market (IUA/Lloyd's-affiliated and non-Lloyd's insurers) and the broking community - and explain in writing how each contributes capacity to a single risk

Trace the end-to-end journey of a typical commercial risk from broker instruction through syndicate subscription to claims settlement, naming the participant responsible at each hand-off

Distinguish clearly between the subscription market (co-insurance via Lloyd's syndicates and companies) and the facultative/reinsurance market, using one worked example of each

Define and correctly use at least 15 market-specific terms (e.g. syndicate, managing agent, binding authority, slip, line, lead, following market, IUA, LMA, LIIBA) in a glossary you build yourself

Explain how Lloyd's governance (Council, Franchise Board, managing agents, members) differs from that of a limited company insurer, and why that matters to a broker placing a risk

Explain the role of the placing broker, producing broker, and broker's delegated authority in the placement chain, including who owes what duty to the client

Describe the underwriter's function within a syndicate, distinguishing the active underwriter's authority from that of delegated underwriters and coverholders

Outline the roles of supporting intermediaries - MGA/MGU, coverholder, TPA, loss adjuster, and claims advocate - and match each to the stage of the lifecycle where it appears

Compare the respective obligations of broker and underwriter in relation to fair presentation of risk, and identify which party bears which consequence if information is withheld

Explain how Lloyd's brokers are accredited and what market rules constrain their conduct when acting for a client

Deconstruct a market slip into its component sections (risk details, insured, period, coverage, conditions, subscription, signing provisions, information section) and state the purpose of each

Explain the function of the MRC (Market Reform Contract) and why standardisation matters for placing and binding risks

Describe how lines are allocated across subscribers, how a lead underwriter's line influences the following market, and how percentages must sum to 100%

Explain the mechanics of binding: when a risk is legally bound, the role of the lead's scratch/initial, and the difference between 'subject to' and firm orders

Identify the common placing conditions (e.g. 'subject to slip', 'subject to survey', 'subject to underwriter') and explain their effect on when cover attaches

Apply a structured risk-assessment framework (hazard, exposure, loss frequency/severity, catastrophe accumulation) to two contrasting risks and justify the rating approach for each

Explain how premium is built up in the subscription market - rate, exposure base, deductible, terms loadings - and calculate a worked gross premium for a simple risk

Describe the underwriting information an underwriter needs (loss history, survey reports, financials, catastrophe modelling output) and explain what happens when it is missing

Explain how capacity, line size, and reinsurance protections available to the syndicate constrain an individual underwriter's appetite

Distinguish technical rate from market rate and explain the commercial pressures that can move one away from the other

Explain the legal building blocks of the insurance contract - offer, acceptance, consideration, insurable interest, utmost good faith - and apply each to a London Market placement

Distinguish the roles of slip, policy wording, endorsements and certificates, and explain which document prevails when they conflict

Draft three endorsements (one adding an insured, one restricting cover, one correcting a clerical error) using market-standard structure and clear operative language

Explain the function of standard market wordings and clauses (e.g. several liability, cancellation, governing law/jurisdiction, sanctions limitation) and why each is included

Describe the process by which a placed slip becomes a signed policy, including who prepares the policy and how discrepancies are resolved

Map the claims lifecycle in the London Market from notification through to settlement and recovery, naming who does what at each step

Explain the role of the claims lead, the following market, loss adjusters, and claims agreement parties, and how claims are agreed across multiple subscribers

Describe how claims are notified, reserved, and reported, and why timely reserving matters to syndicate and company results

Explain the principal coverage issues that arise at claims stage (late notification, proximate cause, exclusions, condition precedent) and how each is resolved

Outline how subrogation and reinsurance recoveries interact with the original claim settlement

Distinguish facultative from treaty reinsurance and proportional (quota share, surplus) from non-proportional (excess of loss, stop loss) structures, with a worked numeric example of each

Explain why reinsurance is central to London Market capacity - how it enables underwriters to accept larger lines and how it shapes pricing

Describe the role of the reinsurance broker, the reinsurance slip, and how reinsurance is placed and bound in the subscription market

Explain outward reinsurance protections available to a syndicate and the concept of gross vs net line

Identify the main reinsurance clauses (reinstatement, follow the settlements, retention, aggregation) and explain the effect of each on recovery

Explain the respective roles of the PRA and FCA in regulating London Market firms, and distinguish prudential from conduct requirements

Describe the core conduct obligations that apply to brokers and underwriters, including fair treatment of customers, conflicts of interest, and the fair presentation of risk

Explain the sanctions and financial crime controls a London Market firm must operate, and why screening applies at placement and at claims

Outline Lloyd's own market oversight (minimum standards, performance management, market conduct rules) and how it sits alongside statutory regulation

Consolidate the full syllabus into a single revision map, then test yourself with 40 self-written questions and score at least 80%