Insurance Commission Licensure Exam - Non-Life study plan

Define risk, peril, hazard, and exposure and classify at least 15 sample loss scenarios by the correct term.

Explain insurable interest and identify who holds it and when it must attach across fire, marine, motor, and liability examples.

Apply the principle of indemnity to compute the maximum recoverable amount in at least 10 short numerical cases involving underinsurance and valued policies.

Distinguish subrogation from contribution and state the conditions under which each right arises.

Explain proximate cause and decide the nearest efficient cause in at least 8 chain-of-events scenarios, including intervening negligence.

Explain utmost good faith, materiality, and the duty of disclosure, and identify nondisclosure and misrepresentation in 10 case vignettes.

Differentiate warranties from representations and classify policy terms as conditions precedent, conditions subsequent, or mere descriptions.

Trace offer, acceptance, consideration, and countersignature through the formation of a non-life policy, noting when cover begins.

Explain how breach of a condition, concealment, or fraud renders a policy void or voidable and state the insurer's remedies in each case.

Interpret exclusions and conditions in a specimen fire and motor policy and explain how each clause limits the indemnity.

Map the standard fire policy and its perils, extensions, and average clause, and compute a settlement under each.

Outline marine cargo and hull cover, including Institute Cargo Clauses A, B, and C, and explain the difference in perils covered.

Compare motor third-party liability, own-damage, and personal accident benefits and state the compulsory minimum cover.

Describe engineering covers (CAR, EAR, machinery breakdown) and allied lines (burglary, money, fidelity, plate glass) with their key exclusions.

Explain public liability, product liability, and employer's liability cover and identify the insured event in each.

Apply risk selection criteria and classify at least 10 risks into standard, substandard, and declined categories with justification.

Compute gross and net premium using rate, sum insured, and discounts, and explain the components of a loaded premium.

Explain experience rating and no-claim discount mechanics and calculate a renewal premium in 5 worked examples.

Describe proportional and non-proportional reinsurance (quota share, surplus, excess of loss) and show how each affects the ceding insurer's retention.

Identify the underwriting information required for fire, motor, and liability risks and explain how each item affects the rate.

Sequence the claims process from notice to settlement and state the time limits and documents required at each stage.

Draft a proof-of-loss checklist and identify the evidence needed to establish the amount of loss in fire, motor, and liability claims.

Apply salvage and subrogation rules to compute net claim cost after recovery in at least 5 numerical cases.

Detect at least 5 fraud red flags in claim narratives and describe the referral and investigation steps.

Explain dispute resolution options, including insurer complaint channels, the Insurance Commission, and arbitration, and state when each applies.

Outline the Insurance Code provisions on licensing of insurers, agents, and brokers and state the requirements and prohibitions for each.

Explain market-conduct rules, including policy issuance, premium remittance, and remittance deadlines by agents and brokers.

Identify unfair claim settlement practices and prohibited rebating and misrepresentation under the Code.

Describe anti-fraud obligations and the reporting duties of insurers and intermediaries.

Apply the ethical duties of an agent or broker to 8 conflict-of-interest vignettes and state the correct course of action.

Explain unearned premium reserve, outstanding claims reserve, and IBNR and compute each in at least 3 worked examples.

Interpret a simplified non-life balance sheet and income statement and calculate the loss ratio, expense ratio, and combined ratio.

Explain solvency margin and the role of admitted assets and required capital in measuring insurer strength.

Describe the taxation of premiums and claims, including premium tax, documentary stamp treatment, and deductibility of claim payments.

Explain how investment policy and asset-liability matching support claim-paying ability in a non-life insurer.

Review weak areas flagged in weeks 1-7 and rewrite the principles and product cheat sheets from memory.

Complete two full-length timed practice exams under exam conditions and score each by domain.

Analyze every missed item, classify the error as knowledge, application, or reading, and log the correction.

Rehearse numerical computations for indemnity, average clause, premium, and claim settlement until each is completed accurately within time limits.

Confirm exam-day logistics, allowed materials, and a final-week revision schedule.