The objective of this unit is to develop in the candidate an understanding of delegated underwriting authority from the perspective of all participants, including the setting up, successful management and development of business.
The default Enrolment option for this unit includes:
- Latest version of the core learning content, in digital format only.
- Assessment entry.
The usefulness of the ability of an organisation to use external resources to assist it in the running of its business is universally recognised and is not focused on the insurance business alone.
What this study text looks at is the very specific decision that insurers can take to delegate any authority to another entity. It considers the risks and benefits to both, and the operational considerations that should be taken into account, both before such a relationship is set up and during its lifetime. This study text will not consider the wider concept of outsourcing of functions generally within a business.
Please note before you start your studies, it is helpful to ensure that you clearly understand the definition of certain terms and phrases provided in the introduction to the study text.
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.
Delegated Authority (M66) 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
- Understand the business benefits and risks for the use of delegated authorities.
- Understand the legal and regulatory framework related to delegated authorities.
- Understand the setting up of delegated authorities.
- Understand contracts of delegation and contracts of insurance.
- Understand the management of underwriting by the coverholder/managing general agent (MGA).
- Understand the management of claims by the coverholder/MGA.
- Understand key business support functions within the coverholder/MGA.
- Coursework assignment with 10 compulsory short answer questions; and a 60 minute exam comprising 50 multiple-choice questions (MCQs)
- 60% coursework nominal pass mark
- 65% exam nominal pass mark
- The average pass rate for those completing Diploma in Insurance mixed assessment units in full is currently 91.2%
Study material - editions available
2021-22 edition (applicable to exams sat 01 May 2021 to 30 Apr 2022).