M92 Exam Training Practice Tests (CII Insurance Business and Finance (IBF))]

Question 1

The term 'unearned premium' in UK's accounts will be shown as

A. a note to the accounts only. B. an asset. C. shareholder equity. D. a liability.

Correct Answer: D

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Question 2

Under the principles of the Data Protection Act 1988, unless adequate protection exists, personal data should not be transferred

A. To any loss adjuster. B. To any underwriter. C. Outside the EEA. D. To the policyholder.

Correct Answer: C

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Question 3

The company secretary has responsibility for keeping the statutory registers. Which is NOT an example of a statutory register?

A. Register of assets. B. Register of directors. C. Register of directors' interests in shares. D. Register of members (shareholders).

Correct Answer: A

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Question 4

Which management style would it be best to adopt during a period of radical change?

A. Democratic. B. Paternalistic. C. Laissez-faire. D. Autocratic.

Correct Answer: D

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Question 5

What information must be used to calculate the return on equity?

A. Gross written premium and net income B. Operating costs and investment income C. Total assets and total liabilities D. Profit after tax and capital

Correct Answer: D

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Question 6

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

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

Correct Answer: C

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Question 7

At what level of information will the insurer's overall budget be categorised?

A. Transactional B. Tactical C. Strategic D. Operational

Correct Answer: C

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Question 8

The senior managers of an insurance company are reviewing performance against a monthly requirement to have no IT downtime of greater than 30 minutes a quarter. They are reviewing what?

A. A strategic objective B. A key performance indicator C. Key risk indicator D. A budgetary variance

Correct Answer: C

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Question 9

How will a recent acquisition of the subsidiary be shown on the insurer's cash flow statement?

A. It is not shown on the cash flow statement. B. As a cash outflow from investment activities. C. As a financing inflow. D. As an operational income.

Correct Answer: B

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CII Insurance Business and Finance (IBF) - M92 Exam Practice Test