MDI-05 LIABILITY INSURANCE With reference to Irish law and practice SYLLABUS 2016 10
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 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 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 2016 examination sessions will test the legal position as of November of the preceding year. FEEDBACK If you have any comments on this textbook or the material contained therein, The Insurance Institute of Ireland would appreciate your feedback. Please contact us on info@iii.ie 10 The Insurance Institute of Ireland 2015
MDI-05 LIABILITY INSURANCE SYLLABUS CHAPTER 1: INTRODUCTION TO LIABILITY 1 A Define legal liability. K B Describe the main sources of civil liability and distinguish between contract and tort. U C 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 Describe the major remedies available to a plaintiff for breach of a duty at law. U CHAPTER 2: INTRODUCTION TO LIABILITY 2 TORTS A G Explain the scope of the most common torts (negligence, nuisance, trespass, U Rylands v. Fletcher rule, breach of statutory duty, defamation). H & I Describe the defences available to an action in tort and the principle of U contributory negligence. CHAPTER 3: UNDERWRITING AND RISK MANAGEMENT PRINCIPLES IN LIABILITY INSURANCE A Explain the fundamental drivers of successful underwriting. U A4 Apply the principles of risk management to liability risks. A B Describe the role of the risk manager, underwriter and surveyor in relation to U the management of liability risks. C Explain the typical underwriting information relevant to liability risk U proposals, focusing on the importance of the principle of utmost good faith. D Explain the impact of industry codes on the underwriting of liability insurance. U E Differentiate between the operation of occurrence and claims made liability A policy wordings. F & G Demonstrate how an excess of loss liability policy operates and the factors that A are involved in underwriting these covers and risk sharing.
CHAPTER 4: INTRODUCTION TO EMPLOYERS LIABILITY A Explain the main sources of liability for employers. U B Describe the main statutory provisions that regulate the conduct of an employer. U C Differentiate between negligence and breach of statutory duty in U employers liability. CHAPTER 5: EMPLOYERS LIABILITY INSURANCE A Demonstrate the importance of the wages adjustment schedule when rating A employers liability business. B Demonstrate how employers liability insurance is rated. A C Explain why workplace hazards are applied to certain risks. U D Describe the scope of the proposal form when rating employers liability insurance. U E Justify the importance of an employers liability insurance survey. U F Explain the scope of cover provided under an employers liability insurance policy. U CHAPTER 6: PUBLIC LIABILITY INSURANCE A Differentiate between employers and public liability insurance. U B Describe the legal liability of organisations to the general public including the U impact of health and safety legislation. C Explain the premium basis used in rating public liability risks. U D Discuss the main underwriting considerations in public liability risks and how U they are rated. E Outline questions asked on a public liability proposal form. U F Explain the scope of cover under a public liability insurance policy. U G I Identify the various policy exclusions, conditions and extensions applicable to U a public liability insurance policy. CHAPTER 7: PRODUCT LIABILITY INSURANCE A Discuss the impact of product liability related legislation. U B & E Demonstrate how products liability risks are classified and rated and the issues A considered on policy review.
C Explain questions asked on a public liability insurance proposal form. U D Discuss the main provisions of a products liability insurance policy. U F Explain the cover provided by various other product insurances and how this differs U from the cover provided by product liability insurance. CHAPTER 8: PROFESSIONAL INDEMNITY INSURANCE A Outline how professional negligence arises in law common law and tort, under U contract and under statute. B Describe the importance of professional indemnity liability insurance and A demonstrate how liability arises in practice in various professions. C & D Identify the type of questions asked on a professional indemnity insurance proposal A form 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 Identify the importance of directors and officers liability insurance. K B Discuss the common law and statutory liability of directors and officers in general. U C Explain the main underwriting considerations in directors and officers insurance. U D & E Explain the type of questions on a directors and officers liability insurance proposal U form and how such risks are underwritten and rated. F Explain the scope of cover provided under a directors and officers liability U insurance policy. CHAPTER 10: SPECIALIST LIABILITY RISKS A D Describe the main features and operation of: U defamation insurance pension trustee liability insurance environmental liability insurance cyber insurance.