INSURANCE
INTRODUCTION
The basic fact of existence is that all of life is a risk. It is therefore important to build in the
individual and the community at large, the culture of risk consciousness and risk
management.
Insurance being a time tested risk management device; the introduction of insurance
education at the senior secondary school level would therefore serve as a veritable platform
in disseminating this vital risk management option.
The course covers themes such as introduction to insurance, Principles of Insurance, Practice
of Insurance, Insurance Products and General Insurance.
AIMS AND OBJECTIVES
The examination in this subject is to test:
i.candidate's understanding of the basic elements/ Principles of Insurance and
insurance contracts.
ii.candidate's appreciation of the role and importance of insurance service products
which are used to manage the individual and corporate risks.
iii.how candidates apply these principles for personal use and for further education.
STRUCTURE OF THE EXAMINATION
The examination will consist of two papers: I and II.
PAPER I
This will consist of 60 multiple-choice questions and will carry 30 marks. It will last for 1
hour.
PAPER II
This paper will be for one hour 40 minutes. It will consist of 9 essay questions out of which
candidates will be expected to answer any five (5).
All questions carry equal marks and the paper will carry 70 marks.
THEME 1
INTRODUCTION TO INSURANCE
INTRODUCTION:
Meaning of Insurance
i.definition of insurance
ii.the insurer and the insured (policy holder)
iii.insurance contract
iv.elements of insurance
v.essential features of insurance contract
HISTORICAL DEVELOPMENT OF INSURANCE
i.pre-independence insurance market
ii.post-independence insurance market
iii.local legislations for insurance
RISKS
i.definition of risks:
ii.risk and the society
iii.classification of risks:
a.fundamental
b.speculative
c.pure
d.particular
e.dynamic
f.static risks
HAZARDS
i.definition of physical hazard in property e.g. life, motor and liability.
ii.moral hazard e.g. landlessness, dishonesty.
iii.meaning of peril, hazard.
iv.explanation of relationship between hazard and peril.
INSURABLE AND UNINSURABLE RISKS
i.meaning of insurable risks.
ii.insurable risks in life, property and liability.
iii.uninsurable risks e.g. earthquake, war, bad publicity, natural causes etc.
FUNCTIONS OF INSURANCE
i.primary functions that is, spreading of risks.
ii.secondary functions e.g. loss prevention, security etc.
BENEFITS OF INSURANCE
i.importance of insurance benefits
ii.benefits accruing to individuals, society and business organisations.
THEME II
PRINCIPLES OF INSURANCE
i.meaning of insurable interest.
ii.legal requirement of insurable interest.
iii.insurable interest in various classes of insurance.
i.principle of utmost good faith.
ii.insured and insurer's duty of disclosure.
iii.breaches of utmost good faith.
iv.effects of a breach.
i.definition of proximate cause.
ii.determination of proximate cause of events.
iii.application of simple claims.
i.definition of indemnity.
ii.methods of providing indemnity to insurance contract.
iii.limitation of indemnity.
i.meaning of subrogation.
ii.sources of subrogation.
iii.knock - for - knock agreement.
iv.third - party sharing.
i.definition of contribution.
ii.how contribution may arise.
iii.application of contribution.
THEME III
INSURANCE PRACTICE
i.meaning of proposal form.
ii.functions and uses of proposal forms.
iii.contracts where proposal forms are used.
i.meaning of cover note.
ii.characteristics of cover note.
iii.functions and uses of cover notes.
iv.contracts where cover notes are issued.
CERTIFICATE OF INSURANCE
i.definition of certificate of insurance.
ii.certificate of insurance in motor, marine, employer's liability.
POLICY DOCUMENT
i.definition of policy document.
ii.component parts of a policy document.
iii.contraction of a policy.
REINSURANCE
i.forms of reinsurance.
ii.functions of reinsurance.
iii.application of reinsurance.
INSURANCE RENEWALS
i.meaning of renewals notice.
ii.consideration at renewal.
iii.procedure of renewal.
iv.legal status of renewal notice.
v.long term agreement (LTA).
INSURANCE CLAIMS
i.meaning of claim notification.
ii.duties of the insured and the under writer (insurer) in claims.
iii.duties of loss assessors and adjusters.
INSURANCE PREMIUM
i.premium in life and non life.
ii.premium loading.
iii.total return of premium.
iv.partial return of premium.
THEME IV
INSURANCE PRODUCTS
MOTOR INSURANCE
i.types of policies in motor insurance.
ii.scope of motor insurance.
iii.ecowas brown cards.
FIRE INSURANCE
i.standard fire policy cover.
ii.special perils as an extension of standard fire policy.
THEFT INSURANCE
i.properties to be covered.
ii.theft insurance in business premises.
iii.theft by key or trick.
MONEY INSURANCE
i.in transit only.
ii.in safe or strong room after business hours.
iii.in custody of a staff e.g. cashier.
FIDELITY GUARANTY INSURANCE
i.name policy
ii.position policy
iii.blanket policy
iv.bonds
CREDIT INSURANCE
i.own goods in own vehicles.
ii.own goods in hired ve
iii.open cover and use of declaration.
BURGLARY INSURANCE
i.properties to be covered
ii.burglary insurance in business and private premises.
MARINE INSURANCE
i.hull policy
ii.cargo policy
iii.freight policy
AVIATION INSURANCE
i.aviation hull policy
ii.cargo policy
iii.freight policy
iv.liability arising from aircraft operations.
v.liabilities to passengers and non passengers.
ENGINEERING INSURANCE
Types of engineering Insurance e.g boiler, explosion, computer and all risks.
BUSINESS INTERRUPTION INSURANCE
i.machinery breakdown.
ii.fire incident under business interruption insurance.
EMPLOYERS' LIABILITY INSURANCE
i.workman compensation policy.
ii.level of benefit payable.
PUBLIC LIABILITY INSURANCE
i.personal liability policy
ii.product liability policy
PROFESSIONAL INDEMNITY
Liability to professionals such as doctors, lawyers, insurance brokers, accountant, architects.
TERM ASSURANCE
i.forms of term assurance e.g. individual and group.
ii.uses of term assurance.
ENDOWMENT ASSURANCE
i.ordinary endowment.
ii.family income benefit.
iii.house purchase endowment.
iv.educational endowment.
WHOLE LIFE ASSURANCE POLICY
i.whole life policy
ii.mode of operation in whole life policy.
PERSONAL ACCIDENT INSURANCE
i.personal accident insurance.
ii.peril covered
iii.form of personal accident insurance.
THEME V
GENERAL INSURANCE
SPECIAL FEATURES OF LIFE ASSURANCE
i.long term contract
ii.level of premium
iii.surrender value
iv.state recognition
v.paid - up policy
vi.with profit policies
GENERAL USES OF LIFE ASSURANCE
i.educating one's children
ii.provision for retirement
iii.investment
iv.collateral
v.monetary estate
vi.protection
NIGERIA INSURER ASSOCIATION (NIA)
i.purpose of NIA
ii.role of NIA
iii.membership requirements of the association
INSURANCE MARKET
i.insurance companies
ii.reinsurance companies
iii.insurance intermediaries
iv.insurance buyers
v.insurance sellers
vi.supporting services
NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS (NCRIB)
i.meaning of NCRIB
ii.purpose of NCRIB
iii.role of NCRIB
iv.membership of NCRIB
INSTITUTE OF LOSS ADJUSTERS OF NIGERIA (ILAN)
i.establishment of ILAN
ii.role of ILAN
iii.membership of ILAN
NATIONAL INSURANCE COMMISION (NAICOM)
i.NAICOM as a regulatory body.
ii.when it was established.
iii.functions of NAICOM.
CHARTERED INSURANCE INSTITUTE OF NIGERIA (CIIN)
i.establishment of CIIN.
ii.functions of CIIN.
COMMON INSURANCE TERMINOLOGIES
i.concealment
ii.disclosure
iii.days of grace
iv.ex - gratia payment
v.extra premium
vi.endorsement
vii.excepted subject matter of insurance
viii.under insurance
ix.subject matter of contract
x.reform of premium etc.