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CII M92 Exam Syllabus Topics:

SectionObjectives
Insurance and Business Environment- Structure of the insurance market
- Role of insurers, intermediaries, and regulators
Financial Services and Markets- Insurance and capital markets interaction
- Financial system overview
Accounting and Financial Statements- Basic accounting concepts
- Interpreting financial statements
Risk Management and Regulation- Regulatory framework in insurance
- Risk identification and control
Insurance Principles and Practice- Policy structure and contract fundamentals
- Risk and insurance principles
Insurance Operations- Underwriting principles
- Claims handling process

CII Insurance Business and Finance (IBF) Sample Questions:

The financial strength of an insurance company as measured by a ratings agency is always

  • A. a measure of its ability to pay claims.
  • B. a guarantee of the company's future stock price performance.
  • C. a forward-looking forecast of premium growth.
  • D. an endorsement of the company's ethical culture.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Who would be responsible for compliance of the claims function if the activity was outsourced to a specialist claims-handling company?

  • A. The specialist claims-handling company solely.
  • B. The broker who placed the business.
  • C. The insurer would be solely responsible.
  • D. The policyholder.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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A lower liquidity calculation indicates that since last year the insurer's liquidity has...?

  • A. improved.
  • B. remained stable.
  • C. deteriorated.
  • D. no longer needs to be reported.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

An item has been inserted in a company's balance sheet in respect of machinery. Under which heading will this normally appear?

  • A. Technical provisions.
  • B. Non-current assets.
  • C. Current assets.
  • D. Shareholder equity.
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Explanation: Only visible for Fast2test members. You can sign-up / login (it's free).

How is an insurer's solvency coverage ratio calculated?

  • A. Operating profit divided by total liabilities.
  • B. Net written premium divided by total assets.
  • C. Profit after tax divided by earned premium.
  • D. Surplus regulatory capital divided by regulatory capital required.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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