Podcast
Questions and Answers
What does the delay of an insured in producing reports and requesting postponements indicate to the underwriter?
What does the delay of an insured in producing reports and requesting postponements indicate to the underwriter?
What is the expected number of claims if the probabilities for one to five claims are 0.1, 0.1, 0.3, 0.2, and 0.3, respectively?
What is the expected number of claims if the probabilities for one to five claims are 0.1, 0.1, 0.3, 0.2, and 0.3, respectively?
In what situations is the mode a more relevant measure of average than the median?
In what situations is the mode a more relevant measure of average than the median?
What must an underwriter do to assess risk over time after determining exposure for a household risk?
What must an underwriter do to assess risk over time after determining exposure for a household risk?
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What can be deduced from the set of data: 3, 5, 10, 14, 22, 25, 28, 35, and 42?
What can be deduced from the set of data: 3, 5, 10, 14, 22, 25, 28, 35, and 42?
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What is indicated by a list of insurance data: 10, 20, 20, 30, 40, 60, and 60?
What is indicated by a list of insurance data: 10, 20, 20, 30, 40, 60, and 60?
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What type of claims does fraudulent behavior typically encompass?
What type of claims does fraudulent behavior typically encompass?
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What does a higher frequency of claims generally indicate about a risk?
What does a higher frequency of claims generally indicate about a risk?
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What is the impact of a cancellation clause in Rob's insurance policy?
What is the impact of a cancellation clause in Rob's insurance policy?
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What responsibility must a broker understand when considering becoming a Managing General Agent?
What responsibility must a broker understand when considering becoming a Managing General Agent?
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Why would an underwriter delegate authority to a specialist coverholder?
Why would an underwriter delegate authority to a specialist coverholder?
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What channel is most likely used by a large manufacturer of sweets to buy property and liability insurance?
What channel is most likely used by a large manufacturer of sweets to buy property and liability insurance?
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What is a primary role of the Insurance Fraud Enforcement Department regarding illegal intermediaries?
What is a primary role of the Insurance Fraud Enforcement Department regarding illegal intermediaries?
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When expanding into an overseas territory, what risk factors should a large UK insurer primarily consider?
When expanding into an overseas territory, what risk factors should a large UK insurer primarily consider?
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What should insurers aim to identify to combat the issue of professional enablers?
What should insurers aim to identify to combat the issue of professional enablers?
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What type of risk exposure should insurers evaluate when entering a new market?
What type of risk exposure should insurers evaluate when entering a new market?
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What does the presence of both modal averages being 20 and 60 indicate about the data set?
What does the presence of both modal averages being 20 and 60 indicate about the data set?
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What conclusion can an underwriter draw when the standard deviation of claims has increased over time?
What conclusion can an underwriter draw when the standard deviation of claims has increased over time?
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What does using the relative frequency method by underwriter X imply about their approach to claims assessment?
What does using the relative frequency method by underwriter X imply about their approach to claims assessment?
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When analyzing claims experience, why is an underwriter encouraged to use a large sample size rather than a homogeneous database?
When analyzing claims experience, why is an underwriter encouraged to use a large sample size rather than a homogeneous database?
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If an underwriter observes a higher premium level correlating with profitability, what misunderstanding might they have?
If an underwriter observes a higher premium level correlating with profitability, what misunderstanding might they have?
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In assessing the insurance data of values 5, 10, 10, 20, and 30, what would be the correct interpretation of the median?
In assessing the insurance data of values 5, 10, 10, 20, and 30, what would be the correct interpretation of the median?
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What is a key implication when the incidence of fraud is reducing, according to claims data?
What is a key implication when the incidence of fraud is reducing, according to claims data?
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What can be concluded about the modal average in the given insurance data set?
What can be concluded about the modal average in the given insurance data set?
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Study Notes
Examination Guide
- This document is an examination guide for the M80 Underwriting Practice exam
- The exam is based on the 2024/2025 syllabus
- The exam period is from May 1, 2024 to April 30, 2025
- The exam uses multiple choice questions (MCQs)
- The exam is one hour long
- It assesses candidates on English law and practice, unless otherwise stated
- Legislative and industry changes are not examined earlier than 3 months after they come into effect
Introduction
- The guide is produced by the Chartered Insurance Institute (CII) Qualifications and Assessment Department
- It aids students preparing for the E80 examination
- It contains a specimen examination with an answer key
- Ideally, students should complete most of their E80 studies before attempting the specimen exam
- Students need to allocate one hour for the exam
- Students should review their performance and concentrate on weak areas
- The exam must be passed within 18 months of enrolment in M80
Background Information
- CII examination questions undergo a rigorous review and editing process before being finalized
- These questions are written by experienced professionals with relevant technical knowledge
- The questions are carefully worded and concise, clearly and unambiguously providing all necessary information for the answers
- An independent panel of experts reviews the questions to ensure their technical correctness, clarity, and precision
- The Senior Examiner and a CII assessment expert review all examinations
Syllabus
- The M80 syllabus is published on the CII website
- The exam is based on the syllabus, not any specific tuition material
- CII tuition material is the main resource
- Supplementing studies with additional reference material is important
- Supporting information, containing a detailed overview of the covered areas, is available on the unit page
- The syllabus categorizes M80 learning outcomes into different attainment levels, each specifying the required skill level
Examination Information
- The E80 examination consists of 50 multiple-choice questions
- Candidates have one hour to complete the exam
- The exam assesses knowledge based on English law and practice
- Legislative and industry changes will not be tested before they are three months old
- The exam covers Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) rules and regulations
Examination Technique: Multiple Choice Questions
- Candidates should answer questions methodically
- Questions are precisely worded and concisely present necessary information
- Understanding the exact meaning of each question is crucial
- Candidates need to carefully read the entire question and options before selecting an answer
- Emphasized words (e.g., maximum, minimum, normally) should be closely reviewed
- Avoid spending too much time on any single question, and return to any difficult questions later
- Before the exam, visit the CII preparation page, for guidelines; both remote and in-person attendance formats are available
Underwriting Practice
- Purpose: Students will gain understanding of underwriting principles and the environments in which they operate
- Assumed Knowledge: Students must possess basic knowledge of insurance from IF1, legal, or equivalent examinations
- The Examination Will Test: Learning Outcomes within the M80 syllabus as specified on the CII website
- Important Notes: Explain the format of the exam including coursework assignment and MCQ components; details about the syllabus coverage and examination period are included
Reading List
- Further reading materials are available on the CII website
- The examination focuses solely on the syllabus content, without using any particular study material
- Additional material is recommended for comprehensive studies
- A list of study texts, ebooks, journals, and online resources is provided
Specimen Examination Answers
- Provides detailed answers and learning outcomes linked to each question
- The guide covers several learning outcomes with multiple questions per outcome
- The answers are presented with the respective learning outcomes to be considered
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Description
This examination guide is designed for students preparing for the M80 Underwriting Practice exam, scheduled between May 2024 and April 2025. It includes multiple choice questions, a specimen exam with an answer key, and tips for identifying weak areas in knowledge of English law and practice. Essential for any candidate aiming to pass the exam within 18 months of enrollment.
