MDI-05 LIABILITY INSURANCE. With reference to Irish law and practice

Transcription

1 MDI-05 LIABILITY INSURANCE With reference to Irish law and practice SYLLABUS 2015

2 LIABILITY INSURANCE On completion of this MDI-05 module, students should be able to: Outline the nature of the civil procedure and concepts related to negligence and other torts and the main defences to an action in tort, the principle of contributory negligence and the principles relating to limitation of actions. Understand the fundamental objective of successful underwriting, the role of risk managers, underwriters, surveyors, proposal forms, risk surveys and hazards. Understand the main sources of liability, policy cover and relevant underwriting procedures and issues of the following classes of insurance: employers liability; public and product liability; professional indemnity; directors and officers liability; and a number of specialist liability insurances. Understand the main features and workings of the following classes of insurance: legal protection; defamation; pension trustee; environmental liability; and cyber insurance. Each chapter in this textbook addresses a specific topic. The table below lists the learning outcomes for each chapter and these learning outcomes indicate what a student should have learned from their study of that particular chapter. The table below notes where these learning outcomes can be sourced in the text material. Each learning outcome is based on either a Knowledge (K), Understanding (U) or Application (A) basis (or in some cases a combination of these) and this is how they will be tested in the examination. This module is assessed by a 3 hour end-of-semester examination paper, which is in two parts. The whole paper carries 200 marks. In Part I, the student answers 14 short answer questions and in Part II, the student answers 2 essay questions. ASSUMED KNOWLEDGE It is assumed that the candidate already has knowledge of the fundamental principles of insurance as covered in PDI-01 (The Nature of Insurance) and MDI-01 (Insurance and Business Law with reference to Irish Law and Practice), or equivalent exams. IMPORTANT NOTES Candidates should note that the examination will test the module syllabus alone. The syllabus will be based on Irish law and practice. The 2015 examination sessions will test the legal position as of November 2013.

3 FEEDBACK If you have any comments on this module, its syllabus or the material contained therein, The Insurance Institute of Ireland would appreciate your feedback. Please contact us at The Insurance Institute of Ireland 2015

4 MDI-05 LIABILITY INSURANCE SYLLABUS CHAPTER 1: INTRODUCTION TO LIABILITY 1 A Define legal liability. K B Identify the main sources of legal liability and distinguish between contract and tort. K C Discuss and apply the main principles of law relating to limitation of actions A D & E Explain the concepts of vicarious liability and joint tortfeasors. U F State the major remedies available to a plaintiff for breach of a duty at law. K CHAPTER 2: INTRODUCTION TO LIABILITY 2 TORTS A G Define and outline the scope of the most common torts (negligence, K nuisance, trespass, Rylands v. Fletcher rule, breach of statutory duty, defamation) and outline their scope. H Describe the defences available to an action in tort. U I Briefly explain the principle of contributory negligence. U CHAPTER 3: UNDERWRITING AND RISK MANAGEMENT PRINCIPLES IN LIABILITY INSURANCE A Outline the fundamental drivers of successful underwriting. K A4 Apply the principles of risk management to liability risks. A B C Describe the role of the risk manager, underwriter and surveyor in relation to the management of liability risks. Explain the typical underwriting information which is relevant to liability risk proposals, focusing on the importance of the principle of utmost good faith. K U D Explain the impact of industry codes on the underwriting of liability insurance U E Compare the occurrence and claims made wordings. A F G Explain how an excess of loss liability policy operates and the factors that are U involved in underwriting these covers and risk sharing.

5 CHAPTER 4: INTRODUCTION TO EMPLOYERS LIABILITY A Identify the main sources of liability for employers. K B Explain the main statutory provisions which regulate the conduct of an employer, U with particular reference to the Factories Act 1955, Safety in Industry Act 1980, Safety, Health and Welfare at Work Act 2005, Safety Health and Welfare at Work (Construction) Regulations 2006 and Safety Health and Welfare at Work (General Application) Regulations C Differentiate between negligence and breach of statutory duty in K Employers Liability. CHAPTER 5: EMPLOYERS LIABILITY INSURANCE A Demonstrate the importance of the wages adjustment schedule when rating U Employers Liability business. B Discuss and apply how Employers Liability risks are rated. A C Explain why workplace hazards are applied to certain risks. U D Explain the importance and scope of the proposal form when rating U Employers Liability business. E Justify the importance of an Employers Liability survey. U & A F Explain the scope of cover provided under an Employers Liability policy. U CHAPTER 6: PUBLIC LIABILITY INSURANCE A Differentiate between Employers and Public Liability. U B Describe the legal liability of organisations in general including the impact of U health and safety legislation. C Identify the premium basis used in rating public liability risks. K D Discuss the main underwriting considerations in public liability risks and how K they are rated. E Identify questions asked on a public liability proposal form. K F Explain the scope of cover under a public liability policy. U G I Identify the various policy exclusions, conditions and extensions contained in K a public liability policy. CHAPTER 7: PRODUCT LIABILTY INSURANCE A Discuss the impact of product liability related legislation. U B & E Explain how products liability risks are classified and rated and the issues K considered on policy review.

6 C Identify questions asked on a public liability proposal form. K D Discuss the main provisions of a products liability policy. U F Explain the purpose of product guarantee insurance and compare it with U & A products liability insurance. CHAPTER 8: PROFESSIONAL INDEMNITY INSURANCE A Identify how professional negligence arises in law common law and tort, under K contract, and under statute. B Explain the importance of Professional Indemnity liability insurance and outline K how liability arises in practice construction, property, legal and medical professions, financial services including accountants and auditors, other consultancies and professions. C & D Identify the type of questions asked on a professional indemnity proposal form K and how such risks are underwritten and rated. E Explain the scope of cover provided under a Professional Indemnity insurance policy. U CHAPTER 9: DIRECTORS AND OFFICERS LIABILITY INSURANCE A Explain the importance of Directors and Officers liability insurance. K & U B Discuss the common law and statutory liability of Directors and Officers U insurance in general. C Explain the main underwriting considerations in Directors and Officers insurance. K D & E Outline the scope of a Directors and Officers liability proposal form and describe K how such risks are underwritten and rated. F Explain the scope of cover provided under a Directors and Officers liability A insurance policy. CHAPTER : SPECIALIST LIABILITY RISKS A Describe the main features and operation of legal protection insurance, including: U statutory influences scope of cover provided and bases of cover indemnity limits and geographic scope policy extensions and options available after the event Insurance. B Explain how defamation risks are underwritten and rated. U C Outline the main features of Pension Trustee liability insurance. K D Describe the main features and operations of environmental liability and cyber K insurance including statutory influences.