III IC-01 study plan
III IC-01 · Give each week a clear focus.
8 weeks · About 6 hours per week
Principles of Insurance
Define insurance and explain how risk pooling and transfer of risk work, in your own words
Distinguish pure risk from speculative risk and give two examples of each
Classify hazards as physical, moral, or morale and explain how each affects underwriting
Describe the seven characteristics of an insurable risk and test three real exposures against them
Your checkpoint
A one-page glossary of 20 core terms (risk, peril, hazard, exposure, indemnity, pooling, adverse selection, moral hazard) each with a one-sentence original definition and one example
Principles of Insurance
Explain the principle of indemnity and how it limits recovery under different valuation bases
Compare actual cash value, replacement cost, and agreed value on the same hypothetical loss
Explain insurable interest, when it must exist, and how it differs for property and life insurance
Apply the principle of utmost good faith to a non-disclosure scenario
Your checkpoint
A worked loss-calculation sheet showing indemnity recovery for one property loss computed three ways (ACV, replacement cost, agreed value), with a short note on why the figures differ
Principles of Insurance
Explain subrogation, its purpose, and the conditions under which an insurer may waive it
Explain contribution and how it applies when two policies cover the same loss
Distinguish proximate cause from remote cause and identify the proximate cause in three chain-of-events scenarios
Apply the doctrine of proximate cause to an exclusion dispute
Your checkpoint
Three short case analyses (150-250 words each) resolving a loss using subrogation, contribution, and proximate cause respectively, each with a stated conclusion and reasoning
Principles of Insurance
Describe the legal characteristics of a contract and identify which apply to insurance contracts
Explain the roles of offer, acceptance, and consideration in forming an insurance contract
Distinguish a warranty from a representation and explain the remedy for breach of each
Explain how the contra proferentem rule and reasonable expectations affect policy interpretation
Your checkpoint
A comparison table of contract-law concepts (offer, acceptance, consideration, warranty, representation, condition) with the insurance-specific application and consequence of breach for each
Principles of Insurance
Trace the structure of a policy: declarations, insuring agreement, conditions, exclusions, and definitions
Explain the function of deductibles, coinsurance, and policy limits in sharing loss between insurer and insured
Distinguish occurrence from claims-made triggers and state which exposures each suits
Explain how aggregate versus per-occurrence limits change the maximum payable
Your checkpoint
An annotated outline of a standard policy structure with a one-line explanation of the purpose of each section and a numeric example showing how a deductible, coinsurance clause, and limit interact on one loss
Principles of Insurance
Explain the technical bases of ratemaking: expected loss, expense loading, and risk classification
Describe how adverse selection and moral hazard influence pricing and underwriting decisions
Distinguish reinsurance from primary insurance and explain facultative versus treaty arrangements
Explain the roles of agents, brokers, underwriters, actuaries, and claims adjusters in the insurance transaction
Your checkpoint
A one-page process map of the insurance transaction from application through claims settlement, naming the party responsible at each step and the principle that governs it
Principles of Insurance
Explain the purpose of state regulation of insurance and the role of the commissioner
Describe how solvency is monitored through reserves, surplus, and risk-based capital concepts
Explain the function of guaranty associations and residual market mechanisms
Summarize the purpose of the NAIC model laws and the significance of the McCarran-Ferguson Act
Your checkpoint
A 300-word briefing note explaining how solvency regulation protects policyholders, citing at least three regulatory tools and one limitation
Principles of Insurance
Recite the core principles from memory using a self-built one-page summary sheet
Resolve 40 mixed practice items and log every miss with the principle it tested
Re-teach the three weakest principles aloud without notes
Simulate a timed 60-question set under exam conditions
Your checkpoint
A final error log of every missed item mapped to its underlying principle, plus a completed timed practice set with score and the three principles scheduled for last-minute review
Milestones
Week 2: Can explain risk pooling, insurable-risk characteristics, and the indemnity principle from memory and apply ACV versus replacement cost to a new loss without notes
Week 4: Scores at least 80% on a self-made 25-item quiz covering risk, indemnity, insurable interest, subrogation, contribution, proximate cause, and contract formation
Week 6: Can draw the policy structure and the insurance transaction process map from memory and explain how deductible, coinsurance, and limits interact on a numeric example
Week 8: Completes a timed 60-question set at or above 75% and has every missed item mapped to a named principle in the error log