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CII M92 Practice Q&A's

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CII M92 Exam Syllabus Topics:

SectionWeightObjectives
Legal and Regulatory Requirements15-20- Prudential regulation
- Data protection and compliance
- Consumer protection requirements
- Conduct of business regulation
The Insurance Market and Business Environment20-25- Regulatory and legal framework
- Insurance intermediaries and distribution channels
- Structure of the insurance market
- Market competition and segmentation
Business Strategy and Operations10-15- Customer service and relationship management
- Technology and digital transformation
- Strategic planning for insurers
- Product development and management
Underwriting and Pricing20-25- Claims handling overview
- Pricing factors and methods
- Risk assessment and classification
- Underwriting principles and process
Financial Management of Insurers25-30- Investment management
- Premium reserves and claims reserves
- Financial statements and accounts
- Solvency II framework
- Capital management and solvency

CII Insurance Business and Finance (IBF) Sample Questions:

Question #1

Joe should advise the Board that if the IT department is to fulfil its role within the company, it must do what?

  • A. Operate independently from business units
  • B. Make a proactive contribution to the development of business strategy
  • C. Maintain legacy systems without replacement
  • D. Focus exclusively on reducing IT costs
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Correct Answer: B  🗳️

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Question #2

Under which Act would it be a civil offence if Mark were to sell his shares following information obtained in May?

  • A. Data Protection Act 2018
  • B. The Bribery Act 2010
  • C. Companies Act 2006
  • D. Financial Services and Markets Act 2000
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Correct Answer: D  🗳️

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Question #3

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. Key risk indicator
  • B. A key performance indicator
  • C. A strategic objective
  • D. A budgetary variance
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Correct Answer: A  🗳️

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Question #4

Under the Solvency II rules, what is a calculation kernel?

  • A. A register of all IT hardware assets.
  • B. The external auditor's primary testing tool.
  • C. The process for calculating a broker's commission.
  • D. The model used in the quantification of capital requirements for all risk categories.
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Correct Answer: D  🗳️

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Question #5

Which UK companies are required to report whether they are compliant with the UK Corporate Governance Code?

  • A. Only composite insurers.
  • B. All financial services firms.
  • C. All companies registered with Companies House.
  • D. Only those listed on the London Stock Exchange.
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Correct Answer: D  🗳️

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