I. Risk and Insurance
- Meaning and classification of risk
- Risk management
- Functions and benefits of insurance
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Paper 1: Principles and Practice of Insurance
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II. Legal Principles
- Law and essentials of contract
- Privity and types of contract
- Agency, authority, duties and termination
III. Principles of Insurance
- Insurable interest
- Utmost good faith and material facts
- Proximate cause
- Indemnity and its modifications
- Contribution and subrogation
IV. Core Functions of an Insurance Company
- Product development, servicing, marketing and sales
- Underwriting, policy administration and claims
- Reinsurance, actuarial, accounting, investment and control functions
V. Structure of the Hong Kong Insurance Industry
- Statutory, practical and academic classifications
- Insurers, intermediaries and market size
- Trade organisations and claimant-support bodies
- Reinsurance
VI. Regulatory Framework
- Insurance Ordinance and regulation of insurers
- Insurance Authority and licensing of intermediaries
- Codes, complaints and other regulatory measures
VII. Ethical and Other Related Issues
- Duties to policyholders
- Personal data and equal opportunity
- AML/CTF and proliferation financing
- Corruption and insurance fraud prevention
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Paper 1: Principles and Practice of Insurance1 / 20
Which statements about risk are correct? I. A pure risk involves the possibility of loss or no loss, but not gain. II. Faulty electrical wiring is a physical hazard. III. Risk avoidance means accepting a risk and paying losses oneself. IV. Insurance is the only available risk-management technique.
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