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CII Insurance Business and Finance (IBF) Sample Questions:
1. Which management style would it be best to adopt during a period of radical change?
A) Autocratic.
B) Democratic.
C) Laissez-faire.
D) Paternalistic.
2. What is the most likely explanation for the company's return on capital employed being lower than its competitors if they have a good combined ratio?
A) Lower expense ratio.
B) Poor investment returns.
C) Higher premium retention.
D) Higher solvency margin.
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 second line of defence.
B) The first line of defence.
C) The third line of defence.
D) The external auditor's remit.
4. An insurance company uses the double-entry accounting principle for recording insurance transactions to reflect that it has what?
A) Increased its liabilities without a change in assets.
B) Earned an amount of income which is balanced by an increase in cash.
C) Received a payment for a claim.
D) Reduced its equity by paying a dividend.
5. With the action centred leadership model, a leader that spends too much time focussing on the needs of individuals is most likely to result in a:
A) fully autonomous team with no need for management.
B) strong focus on achieving the task at all costs.
C) supportive environment but where the team doesn't always meet its goals.
D) productive team that fails to achieve its financial targets.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: C |
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