The objective of Commercial Insurance Contract Wording (M21) is to develop knowledge and understanding of commercial (re)insurance contract wordings and the legal, regulatory and drafting issues surrounding these wordings.

The default Enrolment option for this unit includes:

• Latest version of the core learning content, in digital format only, delivered on RevisionMate.
• Assessment entry.

In an increasingly complex financial world, (re)insurance, and in particular, (re)insurance contract wordings play a vital role in establishing the terms and conditions of a (re)insurance contract, contract certainty and clarity.

Knowledge of fundamental legal principles and an understanding of the pitfalls of poorly worded insurance contracts can help to avoid errors, omissions and legal disputes. To help understand the importance of (re)insurance contract wordings, this study text focuses on a variety of topics including:

• The environment in which wordings are created.
• Market organisations' support for the world of contract wordings.
• The changing landscape of contract certainty and the importance of industry regulation.
• Key components of a wording.
• The legal and practical considerations when drafting and reviewing.
• Parties to a contract, their responsibilities, and how disputes can be resolved.
• Facultative reinsurance wordings and treaty reinsurance.
• Types of proportional and non-proportional reinsurance clauses.

Building a successful career in insurance

This course is relevant for anyone seeking to develop their knowledge and skills for a rewarding career in the insurance profession or in a support role. Insurance Law (M05) counts towards a Diploma in Insurance. It may also count towards the Advanced Diploma in Insurance.

Please note it is assumed that you already have knowledge of the fundamental principles of insurance as covered in Insurance, Legal and Regulatory (IF1) or equivalent examinations.

Summary of learning outcomes 

1. Understand the environment within which UK commercial (re)insurance contract wordings are created.
2. Understand legal factors affecting commercial (re)insurance contract wordings.
3. Understand the terms and conditions of commercial (re)insurance contract wordings.
4. Understand the different types of reinsurance contract wordings.

Assessment

• Coursework assignment with 10 compulsory short answer questions (marked within 63 calendar days of submission); and a 60 minute exam comprising 50 multiple-choice questions (MCQs)
• 60% coursework pass mark
• 65% exam nominal pass mark
• The average pass rate for those completing Diploma in Insurance mixed assessment units in full is currently 92.0%
• Coursework assignment to be submitted within 6 months of enrolment
• Exam to be passed within 18 months of enrolment (only first exam entry included as part of the enrolment)

Units treated as equivalent

Due to the extent of syllabus overlap, certain combinations of current and withdrawn units will result in only one award of credits.

If a withdrawn equivalent is held you may not need to complete a current unit in order to satisfy a qualification's completion rules. Clarification should always be sought from CII Customer Service.

Find out more about credit awards for equivalent units

Course delivery

Instructions on accessing your course on RevisionMate will be sent to your registered email address. This is typically within two working days of your order being placed, but may be longer, particularly if payment is made by bank transfer or the unit is available as a pre-order.

Study material - editions available

2024-25 edition (applicable to exams sat 01 May 2024 to 30 April 2025)

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• Latest version of the core learning content, in digital format only, delivered on RevisionMate.
• Assessment entry.

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• Latest version of the core learning content, in digital format only, delivered on RevisionMate.
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