問題一覧
1
What are the three type of insurance company in the UK?
Composite, General, Life
2
Who regulates outsourcing for Insurers?
the PRA
3
Who regulates outsourcing for broking houses
the FCA
4
In a proprietary company, who do the profits belong to?
Shareholders
5
What two reasons why insurers purchase reinsurance?
to limit annual fluctuations in losses that affect their underwriting account, to protect against catastrophes
6
Mutual companies are owned by who?
policyholders
7
Under the Companies Act 2006 companies have to have an external audit undertaken if they have at least two of the following:
a turnover exceeding £10.2m, net assets exceeding £5.1m, over 50 employees
8
What are the 3 type of business asset for an insurer?
premiums, claims reserves, shareholders' funds
9
In claims management, a third party administrator (TPA) differs from a loss adjustor in that a TPA:
deals with all aspects of claims management
10
A risk assessment rating Framework assesses risks based on
impact and probability
11
What is a calculation kernel?
the model used in quantification of capital requirements for all risk categories
12
Business will document the risks to the business in the form of a:
risk register
13
Inherent risk is:
the natural level of risk in a process/activity without doing anything to reduce the likelihood
14
Residual risk is:
the amount of risk remaining after controls have been accounted for
15
The risk management process involves:
risk identification , risk analysis, risk reporting, monitoring and iteration
16
A lineslip is:
an agreement between a broker and two or more insurers where a pre agreed proportion of insurance is accepted
17
Risks placed on a lineslip are notified to the supporting insurers via a monthly/quarterly/annual listing called a:
bordereaux
18
A binding authority is:
an agreement set up between a coverholder and an insurer
19
IFRS financial statements consist of
a balance sheet, an income statement, a cash flow statement , notes including a summary of significant accounting policies , a SOCE or SORIE
20
Why does a company demutualise
to raise capital
21
When an insurer seeks to play a role in society through sponsorship and community projects it is called:
a stakeholder perspective
22
What are balanced scorecards used for?
to monitor progress of plans
23
A control cycle from management information perspective is the:
production of reports by exception to show where action may be needed
24
An insurer had a breach under GDPR, what is the maximum period in which it must report it to the ICO?
72 hrs
25
The difference between the current and the quick ratio arises as a result of the amount of:
stock
26
What is a use test used for by an insurance company?
modelling adequacy of capital
27
What is Bornhuetter-Ferguson
combination of the loss ratio method with paid or incurred loss
28
What are the four perspectives taken into account on balanced scorecards
internal perspective , customer perspective , financial perspective, learning and growth
29
In a growing book of business, earned premium will be:
less than written premium
30
In reinsurance terms what is a treaty?
the reinsurer agrees to take a part of all the insurances that a direct insurer underwrites
31
Which type of company views the whole world as one potential market?
a global company
32
Who would be the most likely to conduct "white labelling"!
retailers
33
The acquisition of a loss adjustor by an insurer is an example of:
vertical integration
34
How are critical success factors derived?
from a SWOT analysis
35
What are the two approaches to knowledge management?
codification strategy , personalisation strategy
36
How much alloted share capital is required for a public company to issue shares to the public?
£50,000
37
What is meant by a confirmation statement?
an annual return
38
What is meant by a quoted company?
it is listed on a particular stock exchange
39
When must private small/medium size companies file their accounts?
within 9 months of the year end
40
When must public small/mediun companies file their annual accounts?
within 6 months of the year end
41
What is the second line of defence for risk management?
the risk management department
42
What is the first line of defence for risk management?
front line managers
43
What is the third line of defence for risk management?
the internal audit team
44
How is shareholders equity calculated?
assets - liabilities
45
How is claims runoff calculated?
amount incurred - amount set aside
46
What is the solvency ratio?
net assets / earned premium net of reinsurance
47
What is the liquidity ratio?
total liabilities / cash+investments