Fundamentals of Insurance I

By the end of this lecture, the learner will be able to distinguish risk awareness from risk assessment and explain why awareness must come before assessment.

By the end of this lecture, the learner will be able to translate familiar everyday risks into business exposures using the same awareness and assessment logic.

By the end of this lecture, the learner will be able to identify the main inputs used to support risk awareness and risk assessment.

By the end of this lecture, the learner will be able to distinguish qualitative and quantitative risk assessment methods and choose an appropriate method for a basic scenario.

By the end of this lecture, the learner will be able to explain what the Riskometer represents and how it can support beginner understanding without replacing formal risk assessment.

By the end of this lecture, the learner will be able to plot a basic risk on a likelihood-impact matrix and explain the resulting priority level.

By the end of this lecture, the learner will be able to record risks, causes, controls, ratings, owners, and next actions in a basic register.

By the end of this lecture, the learner will be able to complete a guided risk assessment for a small retail business and compare the output with a model framework.

By the end of this lecture, the learner will be able to recall the module decision rules and answer scenario-based questions on awareness, assessment, inputs, methods, matrices, and risk registers.

Define risk in plain language and identify the three basic parts of a risk situation: uncertainty, event, and consequence.

Compare common professional definitions of risk and explain why different definitions are useful in different insurance contexts.

Classify risk outcomes as loss, uncertainty, opportunity, or a mixture and explain how this affects professional response.

Explain risk attitude and identify why it matters in insurance conversations and workplace decisions.

Identify practical signs of risk-seeking, risk-averse, and risk-tolerant behaviour and choose suitable follow-up questions.

Use the risk attitude curve as a learning model while avoiding rigid labels and unsupported assumptions.

Review the module decision rules and apply them to a short risk-attitude scenario.

Explain why risk management is broader than insurance and why insurance professionals need to understand it.

Describe the role of a risk manager and identify the practical outputs created during risk-management work.

Explain the main stages of a practical risk-management process and how each stage connects to the next.

Identify risks using multiple sources of information and describe them in a way that supports later analysis and treatment.

Analyse risk using likelihood, impact, existing controls, and evidence, then evaluate whether further action is required.

Select an appropriate treatment option for a risk and explain the reasoning behind that choice.

Apply the hierarchy of risk control and explain why some controls are stronger than others.

Assign risk owners, target dates, evidence requirements, and monitoring actions so the risk-treatment plan becomes actionable.

Complete a guided risk-treatment plan for Horizon Retail Store and review the main learning points from the module.

Explain insurance as a method of transferring the financial effect of selected risks to an insurer in exchange for a premium.

Identify different risk exposures in a familiar car-ownership scenario and distinguish damage, theft, liability, and injury-related risks.

Classify risks using common insurance categories and explain why classification influences insurability.

Identify the practical features that make a risk more likely to be acceptable for insurance consideration.

Recognize situations where risk reduction, retention, avoidance, or specialist referral may be more appropriate than purchasing insurance.

Explain premium, deductible or excess, claim, coverage limit, sublimit, insured, insurer, policy, schedule, and wording using a practical scenario.

Explain why coverage decisions require review of the relevant policy wording, schedule, exclusions, conditions, and claim facts.

Apply the Module 5 decision checklist to classify risks, test insurability, identify missing information, and recommend the next professional action.

Summarize the Module 5 decision rules and complete the insurability checklist as a reusable professional learning tool.

Explain why insurance professionals must read insurance documents carefully and understand the role each document plays in the insurance relationship.

Identify the purpose of the main insurance documents used before, during, and after policy placement.

Read a basic policy schedule and identify the insured, policy period, premises, cover sections, sums insured, limits, deductibles, and endorsements.

Identify the main parts of a policy wording, including definitions, operative clauses, cover sections, exclusions, conditions, and claims procedures.

Explain how limits, sublimits, deductibles or excesses, and endorsements affect the practical operation of insurance cover.

Use a structured document-review checklist to identify key policy details, missing information, and referral points in a simple mock insurance document pack.

Explain why the principles of insurance help professionals decide whether an insurance relationship, disclosure, and loss event are valid enough to move toward a claim or underwriting decision.

Explain insurable interest and identify whether a person or business has a lawful financial interest in the subject matter of insurance.

Explain the general purpose of utmost good faith and fair presentation, while recognizing that exact disclosure duties and remedies vary by policy wording and jurisdiction.

Identify common information problems in insurance submissions and explain when missing or misleading information should be clarified or referred.

Explain proximate cause as the dominant or effective cause of a loss and use it to organize a simple claim-cause analysis.

Analyze a chain-of-events loss scenario and recognize when a new independent cause may change the proximate-cause analysis.

Use a decision sheet to review insurable interest, information quality, and proximate cause in a realistic beginner-level property claim scenario.

Explain why the principles in this module protect fairness by preventing overpayment, underpayment, avoidable loss, and unfair recovery outcomes.

Explain the principle of indemnity and apply it to simple property and motor claim scenarios.

Compare common claim-settlement methods and explain when each may be used to apply the principle of indemnity.

Explain when the principle of contribution may apply and why it prevents double recovery from multiple policies.

Calculate simple contribution shares using sums insured and loss amount.

Explain underinsurance, apply a simplified average-clause calculation, and recognize why adequate sums insured matter.

Explain the principles of loss minimization and subrogation and identify practical actions after a loss.

Apply indemnity, contribution, average, loss minimization, and subrogation to a combined scenario and complete the module review.

Convert a short risk scenario into a clear professional insurance conversation using the foundational concepts from FOI 1.

Identify common beginner mistakes in insurance explanations and correct them using careful professional language.

Prepare and deliver a clear two-minute explanation of an insurance concept or scenario using structured, professional language.

Explain the purpose, structure, and expected outputs of the FOI 1 capstone portfolio.

Use a model-answer framework to prepare a clear, structured, and professionally cautious capstone response.

Explain the purpose, structure, and success criteria of the FOI 1 capstone portfolio.

Guide learners through the main sections of the capstone portfolio and show how each section connects to FOI 1 foundations.

Use a self-review checklist to improve the clarity, accuracy, structure, and professional usefulness of the capstone portfolio.

Help learners translate their FOI 1 progress into role-specific next steps for further learning and employability.

Close FOI 1 and prepare learners for FOI 2 by explaining how foundational concepts will be used in practical insurance workflows.