CII Basic Insurance study guide
CII Basic Insurance · Work through your exam, one topic at a time.
The CII Award in Basic Insurance is a short, entry-level qualification from the Chartered Insurance Institute. It is designed for people who are new to insurance or who work alongside the profession and need a solid grounding in how insurance works. The syllabus is organised into four equally weighted areas: basic insurance principles and practice; insurance products and cover; insurance law and regulation; and the insurance market and customer service. Each area carries 25% of the total marks. Topics on this exam: Basic insurance principles and practice, Insurance products and cover, Insurance law and regulation, and Insurance market and customer service. The CII Basic Insurance study guide has 4 sections and about 1,672 words.
01Basic Insurance Principles and Practice
Insurance transfers the financial consequences of specified uncertain events from an individual or business to a pool of policyholders. The insurer needs a large number of similar, independent exposures so that actual losses approximate expected losses (the law of large numbers).
423 words, about 2 min02Insurance Products and Cover
A policy is a contract with an operative clause, definitions, exclusions, conditions, schedule and endorsements. The operative clause states what is insured; exclusions remove cover; conditions set obligations such as notification, mitigation and record-keeping.
417 words, about 2 min03Insurance Law and Regulation
The UK operates dual regulation. The Prudential Regulation Authority (PRA) supervises insurer solvency and capital; the Financial Conduct Authority (FCA) regulates conduct, market access and consumer protection under the Financial Services and Markets Act 2000.
428 words, about 2 min04Insurance Market and Customer Service
The UK insurance market includes limited companies, mutuals owned by policyholders, Lloyd's syndicates, captives and friendly societies. Lloyd's is a marketplace, not a single insurer: syndicates underwrite risks, supported by members' capital and the Lloyd's Central Fund; business is placed through accredited brokers.
404 words, about 2 min