INSU07011 2022 Compliance and Advice 2 (Practice)

Explain the purpose and source of regulation (legal & ethical) within which insurance (general & PMI) regulation takes place and the role of the Central Bank and other regulatory authorities.

Demonstrate and convey the impact of regulation on the provision of advice through the insurance process.

Demonstrate the impact of non-insurance-specific legislation on insurance organisations - insurers (general & PMI) and intermediaries - and on the protection of consumers.

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 company. This module complements the module "Compliance and Advice 1"  and will give the student the opportunity to apply their learning to a number of case studies and work-based 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 most appropriate to their working environment. The completed case studies will be submitted through the learning management system having been signed off by their work-based 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 work-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. The purpose of this work-based syllabus is to ensure that each student has the opportunity to apply the academic principles of the programme in a practical working environment. Specific criteria are provided for each of the case study areas in addition to the assessment criteria. 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) will be uploaded to the learner management system.

This module will be assessed 100% by continuous assessment.

This module has been designed to complement ‘The Compliance and Advice 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 will examine the student's understanding and application of knowledge.

These questions 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 an essay type response.

If the work-based supervisor fails to sign-off on the student's submission, the student has up to a maximum of 3 opportunities to resubmit their case studies. A submission will not be signed off as complete if the work-based supervisor has not signed off on the case studies.

 LO1 WHY WE REGULATE

• Identify why government and society seek to regulate financial services providers and distinguish between structural, systemic, prudential and conduct of business regulation.
• Explain the impact of the European Union and its legislation on the regulation and operation of the Irish insurance market.
• Demonstrate the European Union developments that have influenced the provision of advice in relation to general insurance products.
• Outline the main role of the Central Bank.

LO2 IMPACT OF REGULATION

• State the requirements for the authorisation of insurers and intermediaries and demonstrate the main supervisory methods used by the Central Bank.
• Describe the powers of the Central Bank and demonstrate its enforcement options.
• Identify the system of regulation that applies to the private health insurance market and the regulatory role of the Health Insurance Authority.

LO2 AGENCY AND RELATIONSHIP MANAGEMENT

• Identify the concept of agency, the main duties of an agent to their principal and how an agency may be terminated.
• Explain how agency operates in insurance.
• Explain the scope of a Terms of Business Agreement between a regulated entity and a consumer and outline why regulated firms should conduct regular reviews of customers’ general insurance needs.

LO2 IMPACT OF THE CENTRAL BANK CONSUMER PROTECTION CODE

• Describe and apply the general principles and requirements of the Central Bank Consumer Protection Code.
• Explain the effect of the Central Bank Consumer Protection Code on providing information to a consumer.
• Explain the effect of the Central Bank Consumer Protection Code on knowing the consumer and assessing the suitability of insurance products.
• Demonstrate the effect of the Central Bank Consumer Protection Code on post-sale information and rebates.

LO2 INSURANCE DOCUMENTATION

• Identify and apply the procedures, including the regulatory requirements, regarding general insurance quotations.
• Explain the methods by which underwriting information is gathered.
• Explain the insurance documentation required throughout the insurance process and demonstrate the legal requirements applying to insurers when issuing this documentation.

LO3 OTHER LEGAL REQUIREMENTS

• Demonstrate the impact of non-insurance specific legislation on activities of insurers and intermediaries in relation to financial crime, data protection and equality.
• Demonstrate the scope of consumer protection legislation impacting on insurance contracts and the main legal and regulatory requirements regarding the retaining of consumer information.

LO3 ETHICS AND COMPETENCY

• Identify the importance of fitness and probity in the insurance market and demonstrate the effect of the Central Bank Reform Act 2010 (Sections 20 and 22) Regulations 2011 and the Central Bank minimum competency requirements.
• Explain the importance of ethical standards in the insurance market, particularly in situations where conflicts of interest or whistle-blowing.

LO3 DISPUTE RESOLUTION

• Demonstrate the effect of the Central Bank Consumer Protection Code on errors and complaint resolution.
• Explain the role of the Financial Services and Pensions Ombudsman in dispute resolution.
• Explain the role of the Insurance Compensation Fund and the Investor Compensation Scheme and demonstrate the limitations of these schemes.