IIQE Paper 2: General Insurance Study Guide

Pecuniary-interest insurance: the protected subject is the employer’s financial loss, not physical damage to property or liability to a third party.

The claimant must do so. That differs from all-risks cover, where proof of accidental loss may suffice and the insurer must establish an exclusion it relies on.

Commercial vehicle insurance, because the described risk is a business vehicle. Its exact cover still depends on the policy wording and use terms.

No. The notes describe sickness cover as temporary disablement benefits; death from sickness is treated as a life-insurance risk.

Check whether the policy covers the sickness-related expense and whether its conditions, exclusions and benefit limits are satisfied; the product label alone does not determine payment.

Standard Plan and Flexi Plan. Both are types of Certified Plan, but a Flexi Plan adds enhanced benefits to the prescribed basic benefits.

No. It applies to medical insurance business generally, including group business, VHIS Certified Plans and other medical insurance.

Domestic helper insurance. Household cover may offer an extension, but it is a separately listed product topic and its wording must be checked.

The cancellation or loss-of-deposits section, if included. Check that the reason is an insured peril and that the relevant costs meet the wording.

No. The notes distinguish combined policies, whose sections are separately underwritten and rated, from package policies with predetermined restrictions and a different rating structure.

The claimant must establish it. If the cause is not a peril covered by the wording, the claim does not meet that specified-peril requirement.

That the exclusion applies to the loss. Under the notes’ all-risks distinction, proof of accidental loss is the claimant’s starting point.

No. The notes identify scratching without actual breakage as an exclusion under representative glass wording.

The policy may restrict off-premises cover to conveyance during normal business hours. The time of loss must therefore be tested against the wording.

The obligee is the party the bond protects if the principal fails to meet the obligation; the principal pays the fee and may have to repay the surety.

No. Wear and tear is a typical exclusion; also, the described boiler cover is directed at explosion or collapse during ordinary working.

No. The notes describe it as supplementary to fire and extra-perils cover, and exclude perils normally insured by that policy.

Section II, which provides third-party liability cover. Section I concerns insured project property and remains subject to its own terms.

Erection all-risks insurance, because the notes associate it with loss or damage during erection, installation, storage, testing or commissioning.

No. The notes describe that statutory liability as strict; common-law liability is a distinct head and must be considered separately.

Products liability generally concerns events away from premises owned or occupied by the insured; public liability may be relevant to an event on those premises.

Whether the claim was first made within the policy period, because the notes say professional indemnity cover is most likely claims-made.

The notes identify breach of professional duty as excluded from D&O cover and properly considered under professional indemnity wording.

Not necessarily. The notes say cover usually responds to accidents occurring during the policy year, even if the claim develops later, subject to notification terms.

ICC (A), which is described as all-risks cover. It remains subject to exclusions, so “all-risks” is not unlimited cover.

No. The deductible applies to partial-loss claims, but not to a total-loss claim.

No. The described warranty restricts use to private pleasure and excludes hire, charter or reward.

HK$5 million per occurrence, under the figures stated in the 2022 Study Notes; the requirement remains subject to the Ordinance’s scope and exceptions.

The notes treat renewal as a new contract and say the duty of utmost good faith revives, so material information arising since the previous contract must be disclosed.

A physical hazard: it is an objective feature of the vehicle that may affect the likelihood or severity of loss.

The manager’s repeated disregard of safety procedures is the moral hazard because it concerns behaviour. The flammable stock is a physical hazard.

The form can act as a trigger for further enquiries, such as asking the proposer for details or arranging a risk survey.

A risk survey is suited to inspecting the site and identifying physical hazards. Other sources, such as claims history, provide different information.

No. A quotation may only describe possible terms; the document and surrounding circumstances must be checked to establish whether a contract has been made.

A cover note provides temporary cover as described in it. A quotation may only state proposed terms and does not by itself necessarily establish cover.

No. The policy’s endorsements and special terms form part of the contract and must be read with the standard wording.

No. The certificate confirms the prescribed compulsory insurance, but it does not indicate whether the policy is comprehensive or Act Only.

No. It is the premium calculated on the stated basis. A levy is a separate charge collected under the relevant arrangement.

HK$4,000 × 0.03 = HK$120. The corrected rate is 3%, and the levy is passed to the MIB.

No. Check the actual policy form, including its exclusions and any amendments, because wording differs and exclusions limit ‘all risks’ cover.

Check the schedule for contract-specific details, then read those entries with the standard wording and any endorsements.

No. It is a procedural condition. Whether late notice affects a claim depends on the contract wording and its intended effect.

No amount remains after the excess: HK$900 is below the first HK$1,000 borne by the insured. A franchise could operate differently.

No. Representations need to be material for the stated rules to apply; an immaterial error is effectively irrelevant under that discussion.

It is a specific exclusion: it is tailored to an individual risk rather than applying across the insurance class.

No. The notes distinguish non-marine war exclusions from marine cover, where specialised war-risk clauses may provide cover. Check the applicable policy wording.

No. The notes state that there is no legal duty to give a renewal reminder. Without an agreed renewal, the policy lapses at the end of its period.

No. The policy wording governs. The notes explain that an insured’s refund may be short-period, which can be lower than a pro-rata refund, and some policies restrict cancellation where a claim has arisen.

The insured must establish that the loss occurred and was caused by a peril specified in the policy. The insurer bears the burden of showing an exclusion applies, subject to any reverse-onus wording.

Not necessarily. The policy may require notice of a possible claim or relevant circumstance. The insured should check and follow the applicable notification wording.

Take reasonable care to prevent further damage and do not dispose of it without the insurer’s permission. This preserves evidence and supports a fair assessment.

It can provide medical evidence supporting the insured person’s incapacity. The report does not by itself establish every other requirement, such as policy cover or the amount payable.

An average adjuster. The role differs from a surveyor’s investigation of damage and a loss adjuster’s broader claims investigation and negotiation.

A mediator helps parties work toward a mutually accepted settlement but does not impose one. Arbitration results in an award that is binding on the parties to the arbitration.

It can encourage renewals and recommendations, support intermediary confidence, and reduce complaints that consume time and resources.

No. The notes describe such policies as non-contractual declarations, but they can guide conduct and serve as a measure of the organisation’s performance.

Honest communication about the limitation. Clear information helps the customer understand what protection is and is not being offered.

Internal audit personnel can monitor implementation. The notes also recognise scrutiny by customers and the public, industry associations and the regulator.

No. They are non-statutory, but may be admissible in evidence and may inform the IA’s exercise of its powers, including disciplinary action where applicable.

No. The notes identify possible bribery or corruption in certain circumstances, state that authorised insurers should not offer such rebates in marketing, and distinguish rebates recorded in specified contract or promotional materials.