IIQE Paper 6: Travel Insurance Agents Examination Study Guide

It is fundamental, because its effects extend widely. It is not speculative: a flood exposure presents loss or no change, so it is pure.

Loss reduction: the measure is intended to lower the severity of an identified loss, not necessarily its frequency.

Its primary function is transferring potential financial loss to the insurer for a premium. A wider benefit is encouraging loss prevention, for example through risk inspections.

No. It must be legally enforceable; a social arrangement, such as meeting for lunch, is an agreement but is not necessarily a contract.

The principal subsequently confirms or adopts the act, effectively approving it retrospectively.

Apparent authority may apply if the principal’s representation to the client created that appearance and the client dealt with the agent on that basis.

Not ordinarily. Personal performance is a duty unless the agent has authority to delegate.

The agency terminates at the end of the agreed period, unless the parties have agreed otherwise.

At policy inception. By contrast, the Notes state that marine insurance requires the interest at the time of loss.

A prudent insurer’s judgment: the fact must be capable of influencing acceptance of the risk or the premium.

It can be a misrepresentation or a non-disclosure; separately, it can be fraudulent or non-fraudulent. The Notes include all four combinations.

No. The Notes explain that a loss from an insured peril arising directly from an uninsured peril may be covered, subject to the facts and policy wording.

Cash payment and reinstatement. These are four possible methods described for property policies, subject to their terms.

Nothing is payable if the excess applies as described: the loss does not exceed the amount the insured must bear.

No. Life insurance is generally not indemnity-based, so each policy pays its own specified benefit rather than sharing one indemnity loss.

Yes, to the extent of its indemnity payment. The insurer exercises the insured’s recovery right, and at common law the action is brought in the insured’s name.

The broad divisions are Long Term Business and General Business. Travel insurance combines different covers but is described as predominantly General Business class 1, Accident.

The ICB handles qualifying personal-insurance monetary disputes, but the Notes state that it has no jurisdiction over insurance intermediaries’ misconduct.

No. The Notes state that an insurer’s exemption does not extend to its agents; a person conducting the relevant regulated activity may need an individual agent licence.

Accuracy and access/correction are relevant. The Notes say personal data should be accurate and that data subjects have rights to access and correct their data.

The treatment must refer to actuarial or other reliable-source data and be reasonable having regard to that data and relevant factors.

The agent must refuse and must not conceal the illness. The proposed concealment may be fraudulent, and accepting an advantage in the principal’s business without the required permission may breach the POBO.

The policy is a package with separately defined cover, limits and exclusions. The wording for the relevant benefit, together with applicable general provisions, determines the issue.

No. The Notes distinguish travel insurance tied to travel services arranged by the same agent from separate property insurance, which is not travel insurance just because it relates to a trip.

No. The Notes describe the insurer as normally quoting one premium for the whole policy, even though it contains separately defined sections.

Compare the application and issued document’s insured-person, trip and plan particulars, then read the relevant policy terms, including duration and applicable section wording.

Check the origin and destination limits, trip dates and maximum duration, and the relevant section’s start and end provisions; cancellation cover may have different timing.

No. The Notes state that the absence of a specific question does not remove the proposer’s legal duty to disclose material facts.

No. Check whether the cause of loss meets the section’s trigger, then apply any exclusions and item or section limits. The heading alone does not settle the claim.

Check the application details against the issued certificate or policy and its attached provisions. The latter documents the accepted insurance and its terms; a summary alone may omit relevant wording.

No. Territorial scope and duration are distinct checks. The candidate must also apply the duration limit and any wording on extensions and the period of each section.

It is a rating factor: duration can affect premium. Underwriting is the separate assessment of whether, and on what terms, the risk is accepted.

Payment is made for the listed event carrying the greatest amount, subject to the policy wording; the benefits are not automatically added together.

Not necessarily. The Notes include an example where evidence of an incubation period supported the view that illness was contracted during the trip; apply the wording and evidence to the facts.

No. Check the policy’s definition and exclusions: rehabilitation confinement may be excluded even when the stay follows an operation.

Check whether the policy excuses lack of prior contact when circumstances beyond the traveller’s control made notification impossible, and retain evidence of those circumstances.

Start with medical expenses. Check that eligible treatment was necessarily incurred outside the place of origin during the insured trip for an illness contracted or injury sustained during that trip. Any follow-up expenses after return depend on the policy’s stated period, limits and terms; hospital cash and scheduled accident benefits are different claim types.

The policy may require the insurer or its representative to organise or approve emergency services. Check the wording; an exception may apply if the emergency made notification impossible.

Check whether the policy covers the cause of damage and whether fragile articles are excluded; a breakage claim is not automatically payable.

No. Check the permitted purchase categories; wording limited to essential toiletries or clothing may not cover a stroller.

Check whether the policy requires theft, robbery or burglary and excludes mysterious disappearance; disappearance alone may not satisfy the insured peril.

No. Compare the fee with the policy’s definition of covered replacement costs; the notes describe a case where an express fee was not accepted.

Notify the insurer and obtain any required written consent before admitting liability or agreeing a settlement, then check the section’s exclusions and limit.

Check the baggage-delay section: its delay trigger, time threshold and permitted purchases determine whether that expense qualifies. Permanent loss instead calls for analysis under baggage and personal effects.

Check loss of travel documents, including its covered cause, scope of replacement costs, limits and any reporting conditions. Do not treat the passport’s value as a personal-money loss.

Not automatically. Verify that arrival delay is covered, the cause is insured, and the policy’s threshold and evidence requirements are satisfied.

No. Check the named cancellation causes. An operator’s operational decision may fall outside them unless the policy specifically provides otherwise.

No. Check the policy’s wording and facts; the notes include a case where using the same route did not meet the meaning of rerouting.

No. Check whether that alert level is named under cancellation cover; the notes describe red alerts as potentially relevant to travel delay in some plans.

Check curtailment, because the trip had already begun and was ended early. Apply that section’s specified peril, eligible losses, evidence and limits; delay or cancellation wording is not a substitute.

No. Apply the alert level and section specified in the actual wording. The Notes describe different possible alert triggers across sections and plans.

Check the other-source exclusion and any stated exceptions. The 2021 notes identify possible exceptions for certain benefits, so the exclusion is not necessarily universal.

Check the consent condition and whether the payment affects the insurer’s ability to handle the claim; unauthorised settlement may give the insurer grounds to reject it.

The insured person’s estate. The notes expressly give the estate as the outcome when the proposer names nobody.

Follow the policy wording: some policies exclude travellers outside a stated age range, while others retain cover but reduce specified benefits for those travellers. If cover remains, apply any age-based reduction stated for the relevant benefit.

Check the personal-money section and its reporting requirements, then follow the stated process and retain evidence. A report may be required; coverage cannot be assumed from the theft alone.

Yes. A trigger is only the first check. Apply relevant exclusions and limitations, including any section or policy-wide terms, before reaching a conclusion.

Check the personal-liability wording and notify the insurer; the policy may require prior written consent before admitting liability or settling. Then follow the specified claims process.

It is payable to the insured applicant’s estate. Check the actual policy and do not extend that rule automatically to other types of benefit.

Identify the event, choose the relevant section, and test its trigger, terms, exclusions, limits and claim requirements. Do not assume a universal outcome or skip evidence and consent rules.