Insurance

SCHEME OF EXAMINATION

There will be two Papers, Paper 1 and Paper 2, which will be a composite paper to be taken at one sitting.

PAPER 1: Will consist of 50 compulsory multiple choice questions which would last for fifty (50) minutes and carry fifty (50) marks.

PAPER 2: Will consist of two Sections, Section A and Section B.

Section A: will consist of a compulsory case study and compulsory question on it while

Section B: will consist of Six essay questions, out of which candidates will be expected to answer four. The case study passage will be between 200 to 250 words and will carry 20 marks. Questions in section B will carry fifteen (15) marks each. The Paper will last for 2 hours and carry eighty (80) marks.

1. INTRODUCTION

1. Meaning

2 Historical development
- Pre and Post independence era and Legislations

3. Insurance contracts
- Parties to Insurance contract
- Essential features of Insurance contract

4. Risks: - Meaning.
- Effect of risks on the society.
- Classification of risks.
- Insurable and un-insurable risk.

5. Hazards:
- Meaning.
- types.

6. Functions of Insurance:
- Primary functions.
- Secondary functions.

7. Benefits of Insurance

8. Perils:
- Meaning
- Differences among perils, risks and hazards.

2. PRINCIPLES OF INSURANCE:

1. Insurable Interest

- Meaning
- Essential features of insurable interest
- Application of insurable interest in life assurance and property insurance

2. Utmost Good Faith

- Meaning
- Insured and insurer’s duty of disclosure
- Breaches and effects

3. Proximate Cause

- Meaning
- Application of proximate cause on claims

4. Indemnity

- Meaning
- Methods of providing indemnity by an insurer
- Application of indemnity in property and liability insurance

5. Subrogation

- Meaning
- Insurer’s right under Subrogation
- Insured’s duty under Subrogation

6. Contribution

-Meaning
- Application
- Conditions necessary for contribution

3 DOCUMENTS USED IN EFFECTING CONTRACT

1. Proposal Forms
i. Meaning
ii. Functions and uses
iii. Contracts where proposal forms are used

2. Cover Notes
i. Meaning
ii. Contents of Cover notes
iii. Functions and uses of Cover notes
Iv. Contracts where Cover notes are issued

3. Certificate Of Insurance
i. Meaning
ii. Certificate of Insurance in
  - Motor
  - Marine
  - Employer’s liability

4. Policy
I. Meaning
ii. Component parts of a policy
iii. Parties to a policy

4. INSURANCE PRACTICE

1. Re- insurance
i. Meaning.
ii. Forms ( Facultative and Treaty).
iii. Functions.
iv. Uses.

2. Insurance Renewals
i. Meaning of renewal notice
ii. Renewal procedure
iii. Legal status of renewal notice
iv. No claim Discount (NCD)- meaning and uses
v. Long term Agreement (LTA) – meaning and uses

3. Insurance Claims
i. Meaning of claims
ii. Claim procedure
  - Notification
  - Documentation (Claim forms)
  - Investigation
  - Discharge voucher
  - Payment
iii. Duties of the Insured and the underwriter in claims
iv. Functions of Loss Assessors and Loss Adjusters

4. Insurance Premium
i. Meaning
ii. Factors to be considered when determining a premium
iii. Factors responsible for loading premium
iv. Return premium
- Partial and full return
- Reasons for returning premium

5. NON – LIFE INSURANCE PRODUCT

1. Motor Insurance
i. Meaning
ii. Types of policies in Motor Insurance
  - Private car
  - Commercial vehicle
  - Motorcycle
  - Agricultural and Forestry vehicle
  - Special types ( fork lifts, Tractors , caterpillars)
iii. The scope of cover
  - Act only
  - Third party only
  - Third party, fire and theft
  - Comprehensive
vi. ECOWAS Brown Card ( meaning and uses)

2. Fire Insurance
i. Meaning
ii. Standard fire policy cover
iii. Special perils (earthquake, flood, riot and strike)
iv. Properties covered
  - Building and its contents
  - Machinery and plant
  - Stocks
v. Buyers of fire insurance
  - Individuals
  - Corporate bodies
  - Government agencies

3. Theft Insurance and Burglary Insurance
I. Meaning
ii. Properties covered
  - Household properties
  - Stocks
  - Machinery and Plants
iii. Theft insurance and Burglary Insurance in business and private premises
iv. Differences between Theft Insurance and Burglary Insurance

4. Money Insurance
i. Meaning
ii. What constitutes money ( cash, cheque, postal order )
iii. Types of cover available
  - In transit only
  - In safe or strong room after business hours
  - In custody of a staff e g cashier

5. Fidelity Guarantee Insurance
i. Meaning
ii. Types of policies in fidelity guarantee Insurance
  - Named policy
  - Position policy
  - Blanket policy
iii. Bond ( meaning)
iv. Differences between commercial guarantee and bonds.

6. Engineering Insurance
i. Meaning
ii. types of engineering Insurance
  - Boiler
  - Explosion
  - Computer all risks
iii. Scope of Engineering Insurance
- Material damage
  - Liability cover

7. Marine Insurance
i. Meaning
ii. Marine perils
iii. Type of cover
  - Hull policy
  - Cargo policy
  - Freight policy

8. Aviation Insurance
i. Meaning
ii. Types of Aviation policy
  - Aviation hull policy
  - Cargo policy
  - Freight policy
  - Liability arising from aircraft operation
  - Liability to passengers and nonpassengers
iii. Aviation risks
iv. Factors affecting
v. International regulations of Aviation Insurance
  - Montrel Convention
  - Hague Rule
  - Warsaw convention

9. Employer’s liability
i. Meaning
ii. Policy covered (employees compensation policy)
iii. Level of benefits payable
iv. Perils covered

10. Public liability
i. Meaning
ii. Types
- Personal liability policy
- Product liability policy

11. Professional Indemnity
i. meaning
ii. Professionals that require professional indemnity ( Doctors, Lawyers, Insurance brokers, Accountant, Architects)

12. Business Interruption Insurance( Consequential loss)
i. Meaning ( consequential loss)
ii. Causes of business interruption
- Machinery breakdown
- Fire Incident

13. Personal Accident Insurance
i. Meaning
ii. Risks covered:
- Death
  - Bodily injury
  - Permanent disability
  - Total temporary disability
  - Medical expenses
iii. Forms of personal Accident Insurance ( personal and group)
iv. Benefits ( Death, Bodily Injury and medical expenses)
v. Buys of personal and group accident policy

7. INSURANCE MARKET ( OPERATORS)

1. Meaning

2. Market Operators
i. Insurance Companies
ii. Reinsurance Companies
iii. Insurance Intermediaries (Brokers and Agents)
iv. Insurance Buyers
- Individual and private
- Corporate and public institutions

3. Insurance Sellers
- Insurance Companies
- Re-insurance Companies

4. Supporting Services ( Assessor and Loss Adjusters)