III IC-84 study plan

Define the seven core principles of insurance (insurable interest, indemnity, utmost good faith, contribution, subrogation, proximate cause, loss minimisation) and state in one sentence what each principle requires of insurer and insured.

Distinguish the main classes of insurance business (life, general, health, reinsurance) and identify which regulatory and capital treatment applies to each.

Explain how risk pooling and the law of large numbers allow an insurer to convert individual uncertainty into a predictable claims cost, using a worked numerical example.

Map the structure of a standard policy: insuring clause, exclusions, conditions, definitions, and endorsements, and explain how each part changes cover.

Explain how underwriting decisions feed pricing: distinguish pure premium, expense loading, and risk margin, and show how a change in loss ratio affects the gross rate.

Describe the underwriting cycle and explain why capacity and competition move rates even when loss experience is flat.

Apply the concept of moral hazard and adverse selection to three concrete scenarios and state one control an underwriter would use for each.

Summarise the roles of the actuary, underwriter, and claims handler in the insurance value chain, and identify where their responsibilities overlap.

Evaluate a completed proposal form and identify the material facts an underwriter must have and the consequences of non-disclosure at common law and under statute.

Apply a risk-scoring approach: list the rating factors for a property and a liability risk, and rank them by predictive value.

Interpret a reinsurance arrangement (quota share, surplus, excess of loss) and calculate the ceded and retained amount for a given loss.

Assess an accumulation exposure scenario and propose a control (line size, aggregate limit, or reinsurance cover) that caps it.

Explain the claims notification and triage process, and distinguish a valid claim, a repudiated claim, and a claim settled ex gratia.

Apply the indemnity principle to calculate a settlement for partial loss, total loss, and underinsurance (average clause) scenarios.

Identify the main fraud indicators at notification and describe the investigation steps a claims handler should take before payment.

Describe how salvage and subrogation recoveries reduce net claims cost and show the arithmetic for one recovery.

Distinguish liability claims from property claims and explain how the trigger of cover and the basis of indemnity differ between them.

Explain the role of the loss adjuster, the circumstances that require one, and how their report influences the settlement decision.

Describe complaint and dispute escalation after a claim decision, including internal review and referral to the ombudsman or regulator.

Identify the records a claims file must contain to withstand later challenge, and explain why each record matters.

Outline the regulatory architecture that governs insurance business: licensing, solvency and capital requirements, market conduct rules, and reporting obligations.

Explain the duties of the insurer toward the customer at each stage: product design, disclosure, advice, and post-sale handling.

Distinguish the roles of the board, senior management, the compliance function, and the actuary in a governance framework, and state one accountability for each.

Describe anti-money-laundering and sanctions-screening obligations relevant to insurance and identify the red flags a compliance officer would escalate.

Explain the difference between advised and non-advised sales, and state what the customer must be told in each case.

Apply a suitability or demands-and-needs assessment to a customer scenario and record the recommendation and its rationale.

Describe the main distribution channels (tied agent, broker, bancassurance, direct) and the conflicts of interest each creates.

Explain how commission and remuneration structures are disclosed and why disclosure alone may not remove a conflict.

Synthesise all five domains by answering a full-length timed mock examination under exam conditions and marking it against the answer key.

Identify the two weakest domains from the mock and re-work the specific topics behind every missed question.

Build a one-page formula and definitions sheet covering average clause, cession, loss ratio, and key regulatory duties, and reproduce it from memory.

Practise written answers to calculation questions under time pressure to confirm speed and accuracy.