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Last Updated: Aug 11, 2026
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| Section | Objectives |
|---|---|
| Topic 1: Risk Management and Regulation | - Risk identification and control - Regulatory framework in insurance |
| Topic 2: Insurance and Business Environment | - Structure of the insurance market - Role of insurers, intermediaries, and regulators |
| Topic 3: Insurance Operations | - Underwriting principles - Claims handling process |
| Topic 4: Insurance Principles and Practice | - Risk and insurance principles - Policy structure and contract fundamentals |
| Topic 5: Accounting and Financial Statements | - Interpreting financial statements - Basic accounting concepts |
| Topic 6: Financial Services and Markets | - Financial system overview - Insurance and capital markets interaction |
1. How will a recent acquisition of the subsidiary be shown on the insurer's cash flow statement?
A) It is not shown on the cash flow statement.
B) As an operational income.
C) As a financing inflow.
D) As a cash outflow from investment activities.
2. Which document sets out a company's name and registered office?
A) The registration document / Certificate of Incorporation.
B) The Chairman's Statement.
C) The Articles of Association.
D) The Memorandum of Association.
3. The term 'unearned premium' in UK's accounts will be shown as
A) a liability.
B) an asset.
C) a note to the accounts only.
D) shareholder equity.
4. Where, if at all, must a statement from the chairman of the London office appear, in the annual report and accounts?
A) In the auditor's report.
B) In the notes to the financial statements.
C) It is not required.
D) In the directors' report.
5. 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 second line of defence.
B) The third line of defence.
C) The external auditor's remit.
D) The first line of defence.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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