Paper 2, General Insurance, has 50 questions in 75 minutes and a 70% pass mark. Memorising product names is not enough: scenarios combine the subject matter, insured peril, exclusion, basis of loss measurement and claims process.
Build every product with five fields
- Subject matter: property, legal liability, income, health or another interest.
- Insured peril: the event actually covered, not an assumption based on the product name.
- Exclusion: excluded causes, property, people, territories or periods.
- Loss measurement: actual loss, replacement, agreed value, limit or another basis.
- Claim evidence: notice, documents, mitigation, third-party rights and investigation.
Group products by what they protect
Property and engineering
Connect the subject matter, cause and amount of damage.
Legal liability
Public, employee, product or professional liability begins with legal responsibility to another person.
Motor and transit
Separate statutory minimum cover, vehicle damage, third-party exposure and goods in transit.
Accident and health
Fixed benefits and expense reimbursement may coexist.
For liability cover, ask whether legal liability exists
Injury or damage to a third party does not automatically make the policy pay. Determine legal responsibility first, then check the scope of cover, exclusions, limit and excess.
Answer claims questions on a timeline
After a loss, the insured should protect people, mitigate damage, notify the insurer promptly, preserve evidence and cooperate with investigation. Options involving an admission of liability, a private settlement or disposal of damaged property test whether the candidate understands claim duties.
Three recurring confusions
- Peril versus loss: fire can be the cause; damaged property is the result.
- Liability versus sympathy: cover depends on legal liability and the policy, not how unfortunate an event appears.
- Indemnity versus fixed benefit: not every general-insurance benefit mirrors actual financial loss.
If proximate cause, indemnity, subrogation or contribution remains weak, return to the Paper 1 guide before attempting mixed Paper 2 sets.
Official sources used
Use these primary sources to confirm any change after the article date.
