INSU07009 2022 The Nature of Insurance 2 (Practice)

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

Determine and apply 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.

Act effectively under guidance in a peer relationship with qualified practitioners; learn to act in variable unfamiliar learning contexts managing tasks independently, professionally and ethically.

This module will be delivered through self-directed learning with the support of a supervisor and mentor in the student's workplace. This module complements "The Nature of Insurance 1" module and allows the student to integrate their academic knowledge gained into a practical work-based setting in the completion of a number of case studies and on-the-job tasks. The student will have ample choice to enable them to pick an agreed number of case studies and tasks from the work-based syllabus. The student should focus on case studies that are appropriate to their working environment. The completed case studies will be submitted through the learning management system having been signed off by their supervisor. The completed case studies will be reviewed by IT Sligo's academic programme leader.

There are specific requirements which must be met by the student in completing the experience-based syllabus. The work-based supervisor is required to validate that the case studies and tasks meet the attainment of the learning outcomes of the module. Specific criteria are provided for each of the case study areas. The student must answer the relevant questions posed in the prescribed format. The work-based supervisor will assess the case study/task on a pass / fail basis and the completed case studies (with the supervisor's report) are uploaded to the learner management system by the student. The case studies will not be considered/accepted as complete if they are not submitted with the supervisor's signature/report.

This module will be assessed 100% by continuous assessment.   

This module has been designed to complement ‘The Nature of Insurance 1’ module. The student will relate the topics covered in that module to their workplace environment and will work on these learnings in a business context.

This assessment l examines the student's understanding and application of knowledge. The case studies will require students to link pieces of information together in a cause-and-effect relationship and apply their knowledge and/or understanding to a given set of circumstances.

The answers will involve essay-type responses.

If the work-based supervisor fails to sign-off on the student's submission, the student has a maximum of 3 opportunities to submit their work.

A submission will not be accepted or considered complete if the work-based supervisor has not signed off on the work.

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: PEOPLE & PROCESSES

• Outline the role of the professionals involved in the general insurance underwriting process.
• 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 it 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.