Introduction to Insurance & Insurance Documentation

Course details

This course covers introduction to Insurance and Insurance Documentation.

Objectives

Upon the completion of this course, the participant will have:

• Received a broad introduction to the concept of insurance and will have a general understanding of the insurance market
• Acquired a basic knowledge of the nature and function of insurance
• Understand the economic, legal and social environment in which insurance operates

Content Highlights

• History of insurance
• The concept of risk
• Risk management process
• Functions & limitations of insurance
• Insurable fundamental principles
• The insurance market and its main components
• Main insurance classes and covers
• Agency in insurance
• Underwriting & rating principles
• Insurance documentation
• Claims & office administration
• Reinsurance

Target Audience

• Employees of Financial institutions (both banks and insurance companies) in the early stages of their career, Non-insurance employees who wish to acquire insurance knowledge.

Course Structure

• The course is conducted via a combination of lectures; case studies; role plays; and videos, where applicable.

• The nature and main features of risk and insurance
• The nature and main features of risk
• The concept of risk and risk perception;
• How different risks are categorized;
• The risk management function and process;
• The relationship between frequency and severity of loss;
• The types of risk that can be insured and the types of risk that cannot;
• What is meant by a peril and a hazard as they relate to insurance;

The nature and main features of insurance

• The basis of insurance as a risk transfer mechanism;
• How insurance operates by the pooling of risks;
• How insurance benefits policyholders and society in general;
• The main legal principles governing insurance contracts
• The essentials of a valid contract of insurance;

Agency

Insurable interest

• The requirements for insurable interest in insurance contracts.

Utmost good faith

• How the principle of utmost good faith applies to contracts of insurance;
• How the duty of disclosure operates;
• The definition of a material fact;
• The consequences of non-disclosure or misrepresentation of material facts.

Proximate cause

• How the principle of proximate cause is applied to noncomplex claims.

Indemnity

• The definition of indemnity and which types of policy are policies of indemnity;
• How the indemnity principle is applied to contracts of insurance;
• What is meant by agreed value, new for old, reinstatement and first-loss policies;
• The application of average.

Contribution

• The principle of contribution and when and how it applies.

Subrogation

• The principle of subrogation and how it applies.