Insurance Law and Regulation
Insurance contracts are governed by general contract law plus insurance-specific rules. Candidates must know the elements of a valid contract: offer, acceptance, consideration, intention to create legal relations, capacity and legality. Insurance adds the duty of utmost good faith (uberrimae fidei), requiring disclosure of material facts and no misrepresentation. Understand the distinction between non-disclosure (silence) and misrepresentation (a positive false statement), and between material facts (which influence a prudent underwriter) and facts that need not be disclosed (e.g. matters of common knowledge, facts the insurer already knows or waives).
Know the role of warranties and conditions: a warranty is a fundamental term whose breach may entitle the insurer to avoid the contract; conditions precedent to liability must be satisfied before a claim is payable. Understand the principle of insurable interest and when it must exist (at inception for life; at inception and at time of loss for property).
Regulatory framework: know the purpose of prudential regulation (solvency, capital adequacy, market conduct) and consumer protection rules such as fair treatment of customers, clear disclosure of terms, complaints handling and dispute resolution. Understand the role of the regulator in authorising insurers, approving products where required, and supervising intermediaries.
Traps: confusing avoidance (contract treated as never existing) with cancellation; assuming breach of any term automatically voids a claim; and forgetting that good faith is a mutual duty on both insurer and insured.