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CII Insurance Business and Finance (IBF) Sample Questions:
1. An insurer's Articles of Association must include
A) the regulations for the running of the insurer's internal affairs.
B) the audited financial statements.
C) the minutes of the last board meeting.
D) the premium rates for its top-selling products.
2. 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) Received a payment for a claim.
D) Earned an amount of income which is balanced by an increase in cash.
3. It has been deemed essential that the Information Technology (IT) department have a broad role, working closely with the business. If the IT department are to fulfil its role within the company, it must
A) report directly to the internal audit function.
B) outsource all non-core functions.
C) make a proactive contribution to the development of business strategy.
D) operate entirely independently from day-to-day operations.
4. The plan to takeover NTU by ABC would need to be discussed and agreed by a majority of the ABC shareholders at
A) An extraordinary meeting.
B) The next annual general meeting.
C) A board meeting without shareholder involvement.
D) A meeting of the Franchise Board.
5. How will a recent acquisition of the subsidiary be shown on the insurer's cash flow statement?
A) As a financing inflow.
B) As a cash outflow from investment activities.
C) As an operational income.
D) It is not shown on the cash flow statement.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: B |






