THE CHARTERED

INSURANCE INSTITUTE

780

Aviation insurance

Objective: To provide knowledge and understanding of the principles and practices of aviation
insurance with reference to the applicable law and regulatory considerations, and the ability to
apply them appropriately.
Knowledge ratings:
Each sub-topic has been designated a numerical knowledge rating as follows:
1 General background awareness necessary.
2 Requires a knowledge of the major elements of procedures or concepts and their uses.
3 Requires the ability to evaluate concepts, issues, policies and procedures, together with an
understanding of associated aspects of these items and their application to
various situations.
Knowledge
rating

Knowledge
rating

Method of assessment: See page 7 in the 2004 Advanced

Diploma in Insurance Information for candidates brochure.

Aviation industry backgrounds

Notes:
The syllabus will be based on UK law and practice.
The April session will test the legal position as of
31st August of the preceding year.
The October session will test the legal position as of
28th February of the same year.

Regulatory authorities.
Current and future industry developments in the areas of:

aircraft types and design;

engine and propulsion;

technology and avionics (e.g: TCAS, GWPS, GPS);

safety and training for the modern aircraft.

Aviation market

Main classes of business

Development of aviation insurance.

Historical position of aviation insurance.
Risk placement process broker/insurer relationship, broker
presentations, subscription and vertical marketing practices.
Role of the broker representing client, client services,
marketing, financiers/lessors, technical support,
claims service, training.
Information services available.
Market bodies for aviation insurance.
Technical/professional services adjusters,
attorneys and solicitors.
How underwriters handle competitive pressures.
Recent development of the aviation market-the global market,
international capacity, client-insurer relationships.
The aviation reinsurance market (general, proportional,
non-proportional).

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Types and use of policies for:

aircraft hull and liability insurances;

manufacturers products and liability insurances;

airport liability insurances;

War and allied perils cover.

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Other classes of business

Elements of cover available in the aviation market for:

personal accident;

loss of use;

loss of licence;

cargo.
Use of deductibles.

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Technical background
Use and application of coverages available.
Standard market deductibles.
Bank/leasing company agreements and contractual
requirements affecting underwriters.

2004
The Chartered Insurance Institute 2003

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Underwriting considerations
Rating methods for main classes of business.
Use of profit commissions / NCDs.
How statistics and underwriting records are
employed by underwriters.
Understanding of liability regimes.
Cash flow/investment income considerations on an
underwriting account.
IBNR/methods of reserving.

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Conventions, protocols, agreements

Reasons, scope, limits and defences of the Warsaw
Convention 1929.
Reasons, changes from Warsaw Convention in limits and
conditions introduced by the Hague Protocol 1955.
Reasons for and changes introduced by the Guadalajara
Convention 1961.
Reasons for and terms and conditions of the Montreal
Agreement 1966.
Intercarrier agreements.
Minor conventions including the Guatemala Protocol,
Montreal Protocol, Rome Convention, Montreal Convention,
Tokyo Convention.

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European and other law

Legal systems relating to domestic and international air travel.
Japanabandonment of limits of liability.

2004
The Chartered Insurance Institute 2003

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Future trends in aviation insurance

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Reading list
The following list provides details of various publications which
may assist with your studies. The primary text for this syllabus
is shown in bold type. Periodicals and publications listed as
additional reading will be of value in ensuring candidates keep
up to date with developments and in providing a wider
coverage of syllabus topics. Any reference materials cited are
authoritative, detailed works which should be used selectively
as and when required.
Note: The examination will test the syllabus alone. The reading
list is provided for guidance only and is not in itself the subject
of the examination.
Most of these additional study materials can be borrowed or
purchased from CII Information Services at www.cii.co.uk/is

Aviation Insurance. London: CII. Coursebook 780.

Flight International. Reed Business Publications.

Sutton, Surrey: Reed Business. Information. Weekly.
Lloyds List. LLP. Colchester: Lloyds of London Press. LLP.
Daily (except Sundays).
Insurance Day. LLP. London: Lloyds of London Press,
1995-. Three issues a week.
Aviation Insurance. Rod D. Margo. 2nd edition.
Butterworths, 1989.
Blue Book. LAUA. 5th edition. London: Lloyds Aviation
Underwriters Association 1996-.
Aviation Insurance and Law. LLP. London: LLP, 1997-. Monthly.

Periodicals
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Claims
Settlement of hull claims, with particular reference to:

investigation of claims;

the role of surveyors;

application of policy conditions;

settlement procedure.
Settlement of liability claims within the jurisdiction of the USA,
with particular reference to passengers, appointment of
attorneys and prosecution of claims.
Settlement of liability claims within the jurisdiction of the UK,
with particular reference to passengers, appointment of
solicitors and prosecution of claims.
Significant aspects of liability claims settlement under
other jurisdictions.

Factors affecting underwriting of space and satellite insurances.

Relevant law and claims procedures.

Additional reading

US law
Structure of legal system and jurisdictions.
Characteristics of the US litigation system.
Punitive and compensatory damages.

Primary text

UK law
UK law as applied to international agreements.
Civil Aviation Acts 1949 to present their current application.
Legislation relating to domestic carriage by air.

Space and satellite

Likely developments in the light of present knowledge and

current forecasts.

Risk management in the aviation context

Use of risk management outside consultants/brokers,
in-house personnel, risk financing.
Captivesbenefits, types of captive, aims and objectives.

Third party claims (including product liability).

Governmental investigating bodies and their responsibilities
regarding accidents.

The Journal. London: The Chartered Insurance Institute.

Six issues a year.
Post Magazine. London: Timothy Benn Publishing. Weekly.

Examination guides
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You are strongly advised to study these before the examination.

Please visit www.cii.co.uk to buy online or contact CII Customer
Service for further information on 020 8989 8464.

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