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CII M92 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Accounting and Financial Statements | - Basic accounting concepts - Interpreting financial statements |
| Insurance Operations | - Underwriting principles - Claims handling process |
| Risk Management and Regulation | - Risk identification and control - Regulatory framework in insurance |
| Insurance Principles and Practice | - Risk and insurance principles - Policy structure and contract fundamentals |
| Financial Services and Markets | - Insurance and capital markets interaction - Financial system overview |
| Insurance and Business Environment | - Structure of the insurance market - Role of insurers, intermediaries, and regulators |
CII Insurance Business and Finance (IBF) Sample Questions:
1. To whom is financial accounting most useful?
A) Stakeholders.
B) The underwriting department for technical pricing.
C) Regulators only.
D) The internal audit team.
2. A lower liquidity calculation indicates that since last year the insurer's liquidity has...?
A) deteriorated.
B) remained stable.
C) improved.
D) no longer needs to be reported.
3. What is the most likely explanation for the company's return on capital employed being lower than its competitors if they have a good combined ratio?
A) Poor investment returns.
B) Higher premium retention.
C) Higher solvency margin.
D) Lower expense ratio.
4. Management actions are often regarded as consisting of four key elements. What are these?
A) Risk; compliance; audit; legal.
B) Planning; organising; leading; controlling.
C) Financial; customer; internal; learning.
D) Strategic; tactical; operational; transactional.
5. The financial strength of an insurance company as measured by a ratings agency is always
A) an endorsement of the company's ethical culture.
B) a measure of its ability to pay claims.
C) a forward-looking forecast of premium growth.
D) a guarantee of the company's future stock price performance.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: B |
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