CAIB 1 - Chapter 7

Insurance Training & Education

• This material outlines training and education for insurance, likely for a professional certification.

CAB1 General Insurance

• CAB1 refers to a specific general insurance curriculum/training.
• Icons on the graphic show various types of insurance coverage.

Attendance Poll

• Students are asked if they can hear the facilitator and see the slides, likely during a virtual training session.

Learning Pause

• Students are instructed to recall concepts from the previous session for 3-4 minutes.
• The Forgetting Curve graph displays data on retention over time, emphasizing the value of practice and review.

Insurance Graphic Organizer

• This is likely a study tool for CAIB1 Chapter 6 related to insurance.

Example Exam Question (Theft)

• Theft is a major insurance loss concern.
• Students should provide two examples of theft situations including when, where, and who is involved.

Theft: Major Cause of Loss (Data Points)

• In 2009, $400 million worth of vehicles were stolen in Canada
• Approximately 25% of stolen vehicles were recovered.
• A 1980's study found patterns suggesting theft occurring during specific times/locations (e.g., evenings, Thursday, front of homes).
• Common theft locations include shopping centre lots, hospital/commercial parking lots, and sports cars/imports.

Theft: Major Cause of Loss (Details)

• Common types of vehicle theft include joyriding, commission of other crimes by persons.

• Vehicle theft often occurs due to owner negligence/abandonment.

• Stolen vehicles are frequently found in a short period (within 10 days).

• Criminal rings involved in reselling stolen vehicles/parts.

• Organized rings operate by stealing to order.

• Vehicles selected for theft based on make, model, and specific needs.

Theft: Major Cause of Loss (Specific Cases)

• Example case involving a person picking up work shoes at a mall and parking their vehicle next to an empty spot in the parking lot.
• Criminal Rings frequently steal vehicles to sell quickly.
• Multiple theft rings involved in dealing with stolen parts or vehicles
• Large amounts of theft of vehicles per year from a variety of sources.

Chapter 7: Building Towards Professionalism (Regulation of Brokers)

• The insurance industry is subject to government regulation.
• Administration of insurance is handled provincially.
• Provincial Departments oversee the laws surrounding insurance.

Licensing Standards for Brokers

• Licenses required for brokers applying for a license, or working in certain roles
• License sponsorship is sometimes required in some provinces or by employers.
• Brokers need proper character and credentials
• Licensing examinations vary across provinces.

Licensing Standards (Continued)

• Some provinces require brokers to have certain basic level of licensure (e.g., Fundamental level) before progressing to higher levels of licensing or handling more specific lines of insurance.
• Level I requires some supervision, but not full.
• Level II allows independent work/handling.
• Additional levels may require additional licensing.
• Licensing terms vary from 1 year to 5 years in some provinces.
• Broker must be licensed in each province where they conduct business.

Ethics: Principles of Conduct

• Ethics are codes of conduct applying to individuals and groups in this business
• Moral duty and obligation are key aspects of this industry.

Standards of Ethics

• Brokers' licenses can be revoked in certain situations based on these ethical frameworks.
• These violations can include misrepresenting facts, unethical conduct/committing fraud/being deceitful or dishonest, failing to properly operate within the insurance act and regulations (or equivalent).
• Avoiding conflicts of interest is vital in professionalism
• Ethical conduct is expected/required in the insurance industry.

Professional Associations

• Broker organizations at provincial and national levels often have higher ethical standards than those required by law.
• Their duties extend to ensuring client needs are met with the best available coverage.
• They have to maintain their professional conduct
• Client confidence must be upheld.

Duty to Insurers

• Brokers must adhere to agency agreement terms.
• Broker must respect the legal responsibilities in handling insurer-client relationships.

Important Terms So far

• Students should be summarizing important terms encountered in the insurance training
• Review concepts to limit forgetting.

Creating a "How" Question

• Students should frame a question using the method of "How" to answer about the concepts learned.

Quiz

• A quiz will be provided to assess the student understanding of the material.

Questions

• A questions session will be provided.

Section 2: Errors and Omissions Exposure Analysis (Duty to Client)

• Brokerrs may face lawsuits from clients who experience losses due to underinsured incidents.
• Professional handling is expected in handling issues
• Understanding client requirements must be upheld.

Section 2: Errors and Omissions Exposure Analysis (Duty Towards Insurers)

• Insurers have the right to take action against brokers when they are required to cover losses in an event.
• The cause of many errors and omission claims in this field arises from inadequate coverage.

Causes of Errors/Omissions Claims (Continued Discussion)

• Inadequate coverage is a significant factor
• Failure to advise clients on exclusions/exemptions/terms is significant cause of errors.

Causes of Errors/Omissions Claims (Continued Discussion)

• Misrepresentation of risks/descriptions of risks leads to claims.
• Inappropriate Handling of cancellations/renewal can cause issues

Causes of Errors/Omissions Claims (Continued Discussion - Policy Change)

• Errors of policies are also a major cause of problems.
• Time conflicts in adjusting policies can lead to major problems.

Causes of Errors/Omissions Claims (Processing Delays)

• Delays in processing claims can cause problems
• Keeping time records is essential in the insurance business

Causes of Errors/Omissions Claims (Agency Agreement Violations)

• Violations of the agency agreements result in issues for both the client, insurer, and the broker.

Preventing Errors/Omissions Claims

• Preventing errors requires planning and thorough handling
• This is essential to limit potential errors
• Brokers must clearly outline procedures relating to policy expirations
• Proper documentation is vital in this business.

Preventing Errors/Omissions Claims - Claims Procedure

• Reporting claims quickly to insurers is necessary
• Brokers should notify clients about claim progress
• Keeping records is one way to limit issues

This quiz focuses on the CAB1 General Insurance curriculum and emphasizes the importance of professional training in insurance. It covers various topics, including types of insurance coverage, concepts around the Forgetting Curve, and theft as a major cause of loss. Assess your understanding and retention of crucial insurance concepts.