CIIN Certificate CF2 flashcards
CIIN Certificate CF2 · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Insurable interest
- A financial relationship in which the insured benefits from preservation of the subject matter or suffers loss from its damage; required at inception for indemnity insurance.
- Utmost good faith
- A duty on both parties to disclose all material facts that would influence a prudent insurer's decision, including facts affecting risk assessment and acceptance.
- Principle of indemnity
- The insurer restores the insured to the same financial position after a loss as before it, without profit, subject to sum insured and policy terms.
- Proximate cause
- The dominant, effective cause of a loss that sets the others in motion; remote causes are ignored when determining whether a peril is covered.
- Subrogation
- After paying a claim, the insurer acquires the insured's legal rights against a responsible third party, limited to the amount paid.
- NAICOM
- The National Insurance Commission, established by the National Insurance Commission Act 1997, licenses and supervises insurers, brokers, agents and loss adjusters in Nigeria.
- No premium, no cover
- Under Nigerian insurance law an insurer is not liable under a policy unless the premium has been paid, so cover generally starts only after payment.
- Insurance Act 2003
- A principal Nigerian statute governing insurance business, licensing, capital, conduct and policyholder protection, administered by NAICOM.
- Compulsory motor third party
- Nigerian law requires every motor vehicle used on a public road to have third-party insurance covering liability for death or bodily injury to third parties.
- Pension Reform Act 2014
- Nigerian legislation establishing the contributory pension scheme, PenCom regulation and retirement savings accounts for eligible employees.
- Average clause
- A property insurance condition that reduces a claim in proportion to underinsurance: claim equals loss multiplied by sum insured divided by value at risk.
- Marine cargo Clause A
- Institute Cargo Clauses (A) provide all-risks cover for cargo, subject to exclusions, unlike the narrower named-perils cover of B and C clauses.
- General average
- A maritime principle where sacrifice of cargo or expense to save a ship and cargo in common peril is shared proportionally by all parties benefiting.
- Public liability cover
- Liability insurance protecting an insured against legal liability for death, bodily injury or property damage suffered by third parties arising from the insured's business.
- Motor own damage cover
- Optional motor insurance that indemnifies the insured for accidental loss or damage to the insured vehicle, subject to excess and policy limits.
- Term assurance
- Pure life protection paying a death benefit only if the life assured dies within the chosen term; it has no cash value if the person survives.
- Whole life assurance
- Life cover that pays a benefit whenever death occurs, provided premiums are maintained, and may build a cash surrender value.
- Endowment assurance
- A life policy paying a guaranteed sum on survival to maturity or on earlier death, combining protection with savings.
- Retirement savings account
- An individual pension account under Nigeria's contributory scheme, funded by employer and employee contributions and used to pay retirement benefits.
- Annuity
- A contract that pays a regular income for a fixed period or for life in exchange for a lump sum, commonly used to convert pension savings.
- Underwriting
- The process of selecting, classifying and pricing risks to determine whether to accept them and on what terms, while avoiding adverse selection.
- Moral hazard
- A risk factor arising from the insured's attitude or behaviour, such as carelessness or dishonesty, which increases the likelihood or size of loss.
- Rate adequacy
- A premium rate is adequate when it covers expected losses, expenses, profit and contingencies across the class of business.
- Warranty
- A policy term that must be complied with exactly; breach may allow the insurer to avoid liability, depending on the applicable law and policy wording.
- Reinsurance
- Insurance bought by an insurer to transfer part of its accepted risk to a reinsurer, protecting capital and improving capacity and stability.
- Quota share treaty
- A proportional reinsurance arrangement in which the reinsurer accepts a fixed percentage of every risk within the treaty, sharing premiums and losses similarly.
- Excess of loss
- Non-proportional reinsurance where the reinsurer pays losses above a stated retention up to a limit, often per risk or per event.
- IBNR reserves
- Incurred but not reported reserves estimate claims that have occurred but not yet been notified to the insurer at the valuation date.
- CIIN Code of Ethics
- Professional standards requiring integrity, competence, confidentiality, fairness and disclosure of conflicts from members of the Chartered Insurance Institute of Nigeria.
- Know your customer
- Anti-money-laundering procedure requiring insurers and intermediaries to identify clients, verify identity and monitor transactions for suspicious activity.
- Broker's role
- An insurance broker acts as the insured's agent, advising on cover and placing risks with insurers, unlike an agent who represents the insurer.
- Cover note
- A temporary document evidencing insurance cover before the formal policy is issued, subject to its terms and premium payment.