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MPF intermediaries
MPFMPF Intermediaries ExaminationIIQE Paper 1 · Topic 5
IIQE Paper 1 chapter 5 (5% of the paper): the statutory classes of long term and general business in Schedule 1 to the Insurance Ordinance, practical and academic classifications, reinsurance, the types of insurer and intermediary, and the industry bodies such as the HKFI, the broker associations, the MIB and the ECIRS Bureau.
6 min read5 sections
Checked against the IA Paper 1 (Principles and Practice of Insurance) Study Notes, 2024 Edition (8th edition, Nov 2024; for exams from 17 Feb 2025), chapter 5; Insurance Ordinance (Cap. 41) Schedule 1. Reviewed 6 Nov 2026.. Independent prep, not endorsed by the Insurance Authority or the VTC.
Chapter 5 is only 5% of Paper 1, but the statutory classes are easy marks if you learn them as two lists. The classes are set in Schedule 1 to the Insurance Ordinance (Cap. 41) and are used for authorisation and supervision: an insurer is authorised for particular classes.
| Long term class | Business |
|---|---|
| A | Life and annuity |
| B | Marriage and birth |
| C | Linked long term |
| D | Permanent health |
| E | Tontines |
| F | Capital redemption |
| G | Retirement scheme management category I (guaranteed capital or return) |
| H | Retirement scheme management category II (no guarantee) |
| I |
Every note. Every question. One pass.
3 more sections of this note are part of Premium.
Passes from HK$148, pay once, no auto-renew
Schedule 1 to the Insurance Ordinance (Cap. 41) lists 9 long term classes, lettered A to I, and 17 general classes, numbered 1 to 17.
Long term: it is class D. Sickness insurance is general business class 2.
Funded by a surcharge on motor premiums, it compensates innocent victims of road accidents where the compulsory third party cover fails. Disputes with your own insurer go to the Insurance Complaints Bureau instead.
| Retirement scheme management category III (insurance benefits under retirement schemes) |
| General class | Business | General class | Business |
|---|---|---|---|
| 1 | Accident | 10 | Motor vehicle liability |
| 2 | Sickness | 11 | Aircraft liability |
| 3 | Land vehicles | 12 | Liability for ships |
| 4 | Railway rolling stock | 13 | General liability |
| 5 | Aircraft | 14 | Credit |
| 6 | Ships | 15 | Suretyship |
| 7 | Goods in transit | 16 | Miscellaneous financial loss |
| 8 | Fire and natural forces | 17 | Legal expenses |
| 9 | Damage to property |
Classify by what is insured. Physical damage to property falls in class 8 or 9; the loss of profit after a fire (business interruption) is miscellaneous financial loss, class 16. Employees' compensation is the employer's liability to its staff, so it is class 13.
Trap: permanent health (long term class D) and sickness (general class 2) both cover illness, but they sit on opposite sides of the line.
Takeaway: long term = letters A to I; general = numbers 1 to 17. Permanent health is long term; sickness is general.
Statutory classes exist for the regulator. Insurers and students use two other ways of dividing the business.
| Classification | Purpose | How it divides the business |
|---|---|---|
| Statutory | Authorisation and supervision | Schedule 1 classes |
| Practical | An insurer's internal organisation | By department (class), by source of business, or by type of client. UK style: life, marine, fire, accident. US style: life and non-life |
| Academic | Study and training | Person, property, liability, pecuniary interests |
The academic classes are functional, which makes them a useful checklist for an intermediary reviewing a client's needs:
Reinsurance can be seen from both sides. A Hong Kong insurer that passes part of a large risk to a reinsurer writes outwards reinsurance; the reinsurer accepting it writes inwards business. A company that writes only reinsurance is a professional reinsurer.
Trap: a question names a classification and asks its purpose. Statutory is for the regulator, practical for the insurer, academic for study.
Takeaway: statutory, practical, academic. Academic = person, property, liability, pecuniary interests.