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CII M92 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Understand the structure of the insurance industry | 10% | - Regulatory framework and bodies - Main sectors and participants - Market distribution channels |
| Topic 2: Understand insurance business management | 12% | - Business objectives and strategy - Underwriting and claims processes - Operational activities and controls |
| Topic 3: Case studies integrating all learning outcomes | 10% | |
| Topic 4: Understand roles and functions within insurance organisations | 8% | - Professional roles and responsibilities - Key departments and their interactions |
| Topic 5: Understand accounting principles and application | 18% | - Income, expenditure and profit measurement - Basic accounting concepts and standards - Asset and liability recognition |
| Topic 6: Understand financial strength of insurance companies | 10% | - Rating agencies and financial assessments - Capital adequacy requirements - Reserving and risk capital |
| Topic 7: Analyse business performance using financial ratios | 10% | - Profitability and efficiency ratios - Interpretation and limitations of ratios - Solvency and liquidity measures |
| Topic 8: Understand corporate governance principles | 12% | - Governance structures and responsibilities - Risk management frameworks - Compliance and ethical requirements |
| Topic 9: Understand insurance company accounts and standards | 10% | - Statutory and regulatory reporting - Solvency and capital reporting - Specific accounting rules for insurers |
CII Insurance Business and Finance (IBF) Sample Questions:
Question 1
Under the principles of the Data Protection Act 1988, unless adequate protection exists, personal data should not be transferred
A. To the policyholder.
B. To any underwriter.
C. To any loss adjuster.
D. Outside the EEA.
Question 2
Which UK companies are required to report whether they are compliant with the UK Corporate Governance Code?
A. Only those listed on the London Stock Exchange.
B. All companies registered with Companies House.
C. Only composite insurers.
D. All financial services firms.
Question 3
An individual's role is to set policy, monitor controls and check adherence to it. Where is this role most likely to fall within the 'three lines of defence' model of risk management?
A. The first line of defence.
B. The external auditor's remit.
C. The second line of defence.
D. The third line of defence.
Question 4
What are an individual's rights Under the Data Protection Act concerning the right to have a copy of all records held on computer and paper concerning his motor insurance policy and its associated claims files.
A. He has no right to have a copy of any of the records held on him.
B. He has a right to a copy of all records on payment of a fee.
C. He has a right to a copy of computerised records only.
D. He has a right to a copy of all paper records only.
Question 5
Which body exists to ensure that the London Market as a whole maintains and improves its position as a major worldwide insurance market?
A. The Franchise Board.
B. The Prudential Regulation Authority.
C. London Market Group.
D. The International Underwriting Association (IUA).
Solutions:
| Question 1 Answer: D | Question 2 Answer: A | Question 3 Answer: C | Question 4 Answer: A | Question 5 Answer: C |



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