Examination Syllabus - Singapore College of Insurance

Examination Syllabus
1 - Hazard, risk control and improvement
1.1 Role of surveyors
Candidates should be able to:
- describe the role of surveyors in risk control and improvement
1.2 Physical and moral hazard
Candidates should be able to:
- explain physical and moral hazard and their application to property
insurances
- describe methods of remedying and improving moral hazards
2 - Fire and associated perils
2.1 Causes of fire
Candidates should be able to:
- outline the general causes of fire and the fire triangle
- explain heating and industrial processes as causes of fire
- explain spontaneous combustion as a cause of fire
2.2 Fire inception, propagation and fire load
Candidates should be able to:
- describe the relationship of fire inception, propagation hazards and fire
load
2.3 Spread of fire
Candidates should be able to:
- describe the spread of fire through conduction, convection and radiation;
- explain the problems of multi-tenure buildings, including:
o fire inception
o propagation
o protection
o improvement
2.4 Major causes of fire
Candidates should be able to:
- explain the problems of smoking, electrical apparatus, housekeeping,
contractors, application of heat and arson for fire insurers
2.5 Fire hazards
Candidates should be able to:
- explain the relative fire hazards of materials used in industry

ii | Commercial Property Underwriting
- describe the relative fire hazards of building construction and materials, including
composite panels
2.6 Methods of fire protection
Candidates should be able to:
- describe the methods of fire protection, including:
o
o
upgrading of construction
the provision of fire extinguishers, alarms, sprinklers, drenchers and private fire
brigades
- describe the methods of protection of computer equipment
- describe the methods of protecting property from lightning damage
2.7 Other hazards
Candidates should be able to:
- explain the explosion hazards of flammable liquids and gases and the methods of
reducing such risks
- describe the hazards of dust explosions and the reduction of these risks
- describe the hazards arising from perils of storm, flood, burst pipes, impact,
malicious damage, riot and civil commotion, terrorism and subsidence and their
control
3 - Theft
3.1 Nature of theft
Candidates should be able to:
- discuss the nature of theft risks, including:
o area
o type of property
o security
- explain the pattern of theft losses
3.2 Security measures
Candidates should be able to:
- explain the criteria for security surveys
- describe the nature of perimeter protection, surveillance, access control and security
guards
- describe the nature of door and window construction and its effect on protection
- describe the types and use of intruder alarms
- describe the selection and use of safes
3.3 Protection
Candidates should be able to:
- describe the methods of protection of cash in transit
- describe the protection of vehicles and goods in transit

Examination Syllabus | iii
4 - Surveying
4.1 Survey request
Candidates should be able to:
- explain the objective of a survey request to:
o provide assessment of risk
o improve commercial features of risk
o offer improvement benefits to all parties
o develop loss prevention programmes
4.2 Use and content of surveys
Candidates should be able to:
- explain the content, use and interpretation of survey and interruption reports
4.3 Calculation of Estimated Maximum Loss
Candidates should be able to:
- discuss the calculation of EML (Estimated Maximum Loss) and insurer’s liability
4.4 Underwriting considerations and risk profiles
Candidates should be able to:
- discuss the main underwriting considerations
- explain the standard risk profiles and deviations therefrom
4.5 Fidelity risks
Candidates should be able to:
- describe the basic systems of checking fidelity risks, including the use of:
o references
o employer ’s and employee ’s forms
o survey of computer procedures
4.6 Surveys
Candidates should be able to:
- explain the uses of resurveys and post-loss surveys
5 - Underwriting – Property Insurance
5.1 The underwriter
Candidates should be able to:
- outline the tasks of the underwriter
5.2 Underwriting information development and analysis
Candidates should be able to:
- outline the importance of underwriting information
- describe the sources of information that an underwriter can access to

iv | Commercial Property Underwriting
5.3 Hazard identification and risk evaluation
Candidates should be able to:
- describe the hazard or risk analysis factors are considered important in the overall
evaluation of the risk to be insured, including:
o process hazard analysis
o physical hazard analysis
o moral hazard analysis
o claims analysis
5.4 Risk selection and classification
Candidates should be able to:
- outline the importance of risk selection and classification
5.3 Setting terms and conditions
Candidates should be able to:
- describe the important items that should be considered when determine the
underwriting significance of insurance contract clauses and provisions
5.4 Pricing
Candidates should be able to:
- describe the factors that an underwriter must consider when calculating an insurance
premium to charge
- discuss the factors affecting premium pricing
- discuss the various methods of premium rating
- state the significance of the use of information technology in premium calculations
- discuss the factors to consider in rating adjustments
- describe the treatment of risks that fall outside of the normal underwriting guidelines,
and the underwriting of terrorism risk
5.3 Risk optimisation and control of exposure
Candidates should be able to:
- discuss the theory of Estimated Maximum Loss underwriting
- outline the considerations of setting retentions
- describe the use of reinsurance to increase underwriting capacity and to protect
against risk accumulations
6 - Construction Insurance
6.1 Various types of construction risks and their main exposures
Candidates should be able to:
- discuss the typical risks and main exposures (causes of loss or damage)
- discuss the construction operation and specific project risks
- outline the general classification of project risks

Examination Syllabus | v
6.2 Underwriting and assessment of construction risks
Candidates should be able to:
- discuss the importance of risk assessment and evaluation
- describe the parties in a construction contract
- outline the importance of contract conditions
- explain how typical risks emanating from construction activities may be classified
- describe the significance of the tender stage of the construction contract in risk
assessment and evaluation
- describe the basic information needed by underwriters in risk assessment and
evaluation
- outline the areas to be investigated when assessing the security and safety measures
of a project
- explain the importance of contractual aspects in risks assessment
- outline the remedial approach to render risks acceptable
- state the factors to be considered in the pricing of risks
- distinguish between a single project policy and an annual policy
- describe the advantages of an ‘open’ cover and explain why an ‘open’ cover is not
generously granted by insurers
- describe the underwriting considerations of an annual policy
6.3 Reinsurance
Candidates should be able to:
- explain the application of reinsurance within Construction Insurance
- explain the workings of the various types of reinsurance
7 - Engineering Insurance
7.1 Inspection and surveys of engineering plant and machinery
Candidates should be able to:
- discuss the purpose of inspections of engineering plant and machinery
- discuss the purpose and use of surveys of engineering plant and machinery
7.2 Boiler and pressure plant
Candidates should be able to:
- discuss issues affecting cover for boiler and pressure plant, including:
o typical items of plant and main causes of loss or damage
o risk assessment and underwriting
7.3 Electrical and mechanical plant
Candidates should be able to:
- discuss issues affecting cover for electrical and mechanical plant, including:
o typical items of plant and main causes of loss or damage
o risk assessment and underwriting

vi | Commercial Property Underwriting
7.4 Lifts, cranes and handling equipment
Candidates should be able to:
- discuss issues affecting cover for lifts, cranes and handling equipment, including:
o typical items and main causes of loss or damage
o risk assessment and underwriting
7.5 Engineering and its potential effect on the environment
Candidates should be able to:
- explain the impact of engineering and its potential effect on the environment
7.6 Reinsurance
Candidates should be able to:
- explain the application of reinsurance to Engineering Insurance
7.7 Risks insured of non-inspected classes
Candidates should be able to:
- describe the standard risks insured under non-inspected classes, including:
o computers
o machinery movement
o deterioration of stocks
o miscellaneous plant
o storage tanks
7.8 Risk insured of non-inspected classes (special lines)
- describe the issues affecting risk assessment, technical inspection and underwriting of
the following non-inspected classes:
o latent defects insurance
o professional indemnity insurance
o contract guaranteed bonds
o civil engineering completed risks
8 - Business Interruption relating to Engineering and Construction Insurances
8.1 Engineering Business Interruption Insurance
Candidates should be able to:
- discuss issues affecting Engineering Business Interruption Insurance, including:
o objective of the cover
o risk assessment
o risk management
o underwriting
8.2 Construction Business Interruption Insurance
Candidates should be able to:
- discuss the issues affecting Construction Business Interruption Insurance, including:
o objective of the cover

Examination Syllabus | vii
o risk assessment
o risk management
o underwriting
8.3 Loss of advance rent and interest
Candidates should be able to:
- outline the reasons for coverage of loss of advance rent and interest
9 - Marine Insurance
9.1 Policy forms
Candidates should be able to:
- state the characteristics of the Marine Insurance policy form, including slip policies
9.2 Valued and unvalued policies
Candidates should be able to:
- distinguish between valued and unvalued policies
9.3 Warranties
Candidates should be able to:
- discuss the characteristics and use of warranties in Marine Insurance
9.4 Hull and cargo clauses
Candidates should be able to:
- describe the cover and exclusions of the International Hull Clauses 1/11/03
- identify the key differences in cover and exclusions between the above and the
Institute Time Clauses (Hulls) 1/10/83 and 1/11/95
- describe the cover and exclusions of the Institute Cargo Clauses (A), (B) and (C)
1/1/82
- list the other common trade clauses established for selected trades
- describe the purpose of the Institute Classification Clause 1/8/97
9.5 Rating of marine risks
Candidates should be able to:
- explain the main factors which determine the rate of premium charged for hulls and
cargo
9.6 Use of Experts
Candidates should be able to:
- outline the use of surveyors and average adjusters in claims handling
9.7 Application of reinsurance
Candidates should be able to:
- explain the application of the various methods of reinsurance to Marine Insurance

viii | Commercial Property Underwriting
10 - Aviation insurance
10.1 Types of policy
Candidates should be able to:
- outline the main types of aviation policy
10.2 Hull and liability policy forms
Candidates should be able to:
- describe the main policy forms and their use in Aviation Hull And Liability Insurance
10.3 Scope of cover
Candidates should be able to:
- explain the scope of cover provided by aviation policies and clauses
- identify the main policy exclusions
10.4 Rating of aviation risks
Candidates should be able to:
- discuss the factors which affect the risk
- discuss the methods used to determine the rate for the premium
10.5 Use of experts
Candidates should be able to:
- describe the roles of experts in Aviation Insurance
10.6 Application of reinsurance
Candidates should be able to:
- explain the application of the various methods of reinsurance to Aviation Insurance
11 - Energy Insurance
11.1 Risk assessment
Candidates should be able to:
- discuss the main risk assessment and rating factors applicable to the underwriting of:
o exploration risks
o construction risks
o operational risks
o operators’ extra expenses risks
11.2 Business Interruption and control of well
Candidates should be able to:
- discuss the importance of Business Interruption
- explain how the Business Interruption Insurance works
- describe the advantages and disadvantages of Business Interruption Insurance
- discuss the methods and importance of control of well

Examination Syllabus | ix
11.3 Deductibles and limits
Candidates should be able to:
- explain the application of deductibles and limits to the underwriting of energy risks
11.4 Accumulation
Candidates should be able to:
- describe the effects of accumulation
- explain the methods used for and the importance of controlling accumulation
11.5 Statistics and other information
Candidates should be able to:
- outline the main statistics and information used in underwriting of energy risks
- identify the various sources of this information
- apply it practically to the underwriting of energy risks
11.6 War, strikes and terrorism
Candidates should be able to:
- discuss the effect of war, strikes and terrorism on the underwriting of energy risks
11.7 Clauses
Candidates should be able to:
- explain the cover provided and not provided by the various market policy forms,
including:
o London standard drilling barge form
o offshore construction standard form
o energy exploration and development form
11.8 Claims
Candidates should be able to:
- describe the main players involved in claims
- explain the main types of claims, including business interruption arising under:
o exploration risks
o operational risks
o construction risks

x | Commercial Property Underwriting