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CII M92 Exam Syllabus Topics:

SectionWeightObjectives
Understand insurance business management12%- Operational activities and controls
- Business objectives and strategy
- Underwriting and claims processes
Understand roles and functions within insurance organisations8%- Professional roles and responsibilities
- Key departments and their interactions
Understand accounting principles and application18%- Asset and liability recognition
- Basic accounting concepts and standards
- Income, expenditure and profit measurement
Understand corporate governance principles12%- Compliance and ethical requirements
- Risk management frameworks
- Governance structures and responsibilities
Case studies integrating all learning outcomes10%
Understand insurance company accounts and standards10%- Statutory and regulatory reporting
- Solvency and capital reporting
- Specific accounting rules for insurers
Understand the structure of the insurance industry10%- Main sectors and participants
- Market distribution channels
- Regulatory framework and bodies
Analyse business performance using financial ratios10%- Profitability and efficiency ratios
- Solvency and liquidity measures
- Interpretation and limitations of ratios
Understand financial strength of insurance companies10%- Capital adequacy requirements
- Reserving and risk capital
- Rating agencies and financial assessments

CII Insurance Business and Finance (IBF) Sample Questions:

Question 1

An insurance company uses the double-entry accounting principle for recording insurance transactions to reflect that it has what?

A. Reduced its equity by paying a dividend.
B. Increased its liabilities without a change in assets.
C. Earned an amount of income which is balanced by an increase in cash.
D. Received a payment for a claim.


Question 2

What is the primary function of financial accounting?

A. To report the financial position to all stakeholders.
B. To ensure regulatory capital is minimized.
C. To provide management with internal budgets.
D. To calculate the technical premium for products.


Question 3

Mark is the managing director and Steve is the finance director of a firm of insurance brokers. They should be aware that:

A. only the finance director holds statutory liability for the accounts.
B. only the managing director is responsible for filing accounts.
C. the company secretary has sole responsibility.
D. they are both responsible for the submission of their accounts to Companies House.


Question 4

What is the minimum period of notice which must be given by a company to its shareholders of the annual general meeting?

A. 60 days.
B. 21 days.
C. 30 days.
D. 14 days.


Question 5

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

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


Solutions:

Question 1
Answer: C
Question 2
Answer: A
Question 3
Answer: D
Question 4
Answer: B
Question 5
Answer: B

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