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| Section | Objectives |
|---|---|
| Topic 1: Risk Management and Regulation | - Risk identification and control - Regulatory framework in insurance |
| Topic 2: Accounting and Financial Statements | - Interpreting financial statements - Basic accounting concepts |
| Topic 3: Insurance Operations | - Underwriting principles - Claims handling process |
| Topic 4: Financial Services and Markets | - Financial system overview - Insurance and capital markets interaction |
| Topic 5: Insurance and Business Environment | - Role of insurers, intermediaries, and regulators - Structure of the insurance market |
| Topic 6: Insurance Principles and Practice | - Policy structure and contract fundamentals - Risk and insurance principles |
1. The chief executive officer of a large insurance company wishes to review its solvency margin. From which financial document will he obtain the necessary information?
A) The statement of cash flows
B) The management accounts
C) The income statement
D) Balance sheet
2. Under which Act would it be a civil offence if Mark were to sell his shares following information obtained in May?
A) The Bribery Act 2010
B) Companies Act 2006
C) Data Protection Act 2018
D) Financial Services and Markets Act 2000
3. An insurance company uses the double-entry accounting principle for recording insurance transactions to reflect that it has what?
A) Increased its liabilities without a change in assets.
B) Reduced its equity by paying a dividend.
C) Earned an amount of income which is balanced by an increase in cash.
D) Received a payment for a claim.
4. The financial strength of an insurance company as measured by a ratings agency is always what?
A) A guarantee of policyholder dividends
B) An assessment of stock price growth potential
C) A measure of its market share
D) A measure of it's ability to pay claims
5. Which document sets out a company's name and registered office?
A) The Memorandum of Association.
B) The Articles of Association.
C) The Chairman's Statement.
D) The registration document / Certificate of Incorporation.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: D |
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