INSU07008 2022 The Nature of Insurance 1 (Theory)

Illustrate the key concepts underlying insurance and describe the insurance market.

Determine the relevance of the laws of tort and contract in insurance.

Discuss and apply insurance principles (including subrogation, contribution, indemnity, utmost good faith, proximate cause and insurable interest) in their relevant contexts i.e. underwriting, claims etc.

Outline the roles of the various professionals and areas of business involved in the general insurance profession.

This module is delivered with a blend of self-directed study supplemented by e-learning resources such as online lectures and webinars The teaching and learning modes will include:

Textbook

Dedicated Textbooks for each module in hard copy and downloadable format updated annually to reflect changes in legislation and regulation.  Summaries of each chapter will be provided highlighting key topic areas.

How-To Guides

A range of ‘how to’ guides including a glossary of terminology in Insurance and exam support

Synchronous and Asynchronous Lectures

Online lectures utilise lecture notes with extra reading material. Links from tutorials to textbooks for easy access and review In these sessions.

In-class discussion

The in-class discussion will be used to encourage conversation and debate and to support students to build their networks and apply their learning in their workplace.

Quitch - Gamification App
A gamification app to allow students to test their knowledge on each chapter of the textbook. 

Online Resources

Infographics, videos, and podcasts, Mock Exams and Questions

This module will be assessed 100% by final MCQ examination.

This module will be assessed 100% by final MCQ examination

LO1 THE IRISH INSURANCE MARKET – WHERE YOU WORK

• Explain the structure and operation of the general and private health insurance markets.
• Identify the functions of the main industry and professional bodies in the Irish insurance market.

LO1 RISK AND RISK MANAGEMENT

• Explain and apply these key insurance terms – risk, uncertainty, frequency, severity, peril and hazard.
• Recognise the interaction between risk management and insurance and identify the risk management techniques that can protect customers and their businesses (physically and financially).
• Classify risks to determine whether they are capable of being insured.

LO1 INSURABLE RISKS AND THEIR INSURANCE SOLUTIONS

• Explain the role of insurance as a risk transfer mechanism, its benefits and how risks are pooled and shared.
• Identify the risks faced by general insurance customers and the appropriate insurance solutions to meet these needs.

LO1 UNDERWRITING PROCESSES

• Demonstrate the relationship between underwriting and the premiums charged for general insurance policies.
• Describe the typical underwriting measures available to an underwriter when considering a general insurance proposal.
• Demonstrate the impact of private health insurance principles on the underwriting of this class of insurance.
• Define reinsurance, state what prompts its use and outline the main types of reinsurance.

LO2 THE INSURANCE CONTRACT AND POLICY

• Describe the main elements of a valid contract of insurance, how a contract is discharged and remedies for breach of contract.
• Outline the structure of a general insurance policy and explain the impact of a breach of policy condition.
• Explain the legal principle of insurable interest in general insurance.
• Explain the legal principle of utmost good faith, including the duty to disclose material facts and the impact of non-disclosure on payment of claims and continuance of the policy.

LO2 THE LEGAL ENVIRONMENT

• Outline the torts of negligence; trespass, nuisance, strict liability, defamation and breach of statutory duty as they apply to insurance.
• Demonstrate the relevant limitation periods applicable in tort.

LO3 DUTIES AND RESPONSIBILITIES IN THE CLAIMS PROCESS

• Explain the responsibilities of the insured after a loss.
• Explain the principle of proximate cause and illustrate its operation in the claims process.
• Demonstrate the regulatory responsibilities of the insurer and the adviser during the claims process.

LO3 CALCULATING THE CLAIM PAYMENT: WHO SHOULD PAY AND HOW MUCH?

• Outline the concept of indemnity and identify an insurer’s settlement options when providing indemnity to a policy-holder.
• Demonstrate the application of indemnity to a policy of insurance.
• Explain the principle of subrogation and apply it in situations where recovery rights may be exercised.
• Explain the principle of contribution and apply it in situations where dual insurance exists.

LO4 PEOPLE, ROLES & RESPONSIBILITIES

• Outline the role of the various professionals involved in the general insurance sector.
• In the underwriting process, outline the professionals involved at each stage of the process.
• Outline the other disciplines likely to be encountered as a general insurance practitioner and member of the profession.