Free CII M92 Exam Dumps Questions & Answers

Under the activity-based costing system used by the insurer, a department regarded as a profit centre will...?

• A.be solely responsible for its investment income.
• B.not be allocated any costs.
• C.be invoiced by a central department on a cost per unit basis.
• D.be exempt from internal budgetary control.

Under the principles of the Data Protection Act 1988, unless adequate protection exists, personal data should not be transferred

• A.To any loss adjuster.
• B.To the policyholder.
• C.Outside the EEA.
• D.To any underwriter.

An insurer is establishing its claims reserving policy on a discounted claims basis. This confirms that...

• A.all claims will be paid more quickly
• B.the reserve will be larger than an undiscounted reserve
• C.investment income is being taken into account
• D.the insurer is insolvent

A balance sheet records a company's what?

• A.Cash inflows and outflows
• B.Net financial position
• C.Profit or loss for the year
• D.Budgetary variances

The financial strength of an insurance company as measured by a ratings agency is always

• A.an endorsement of the company's ethical culture.
• B.a guarantee of the company's future stock price performance.
• C.a measure of its ability to pay claims.
• D.a forward-looking forecast of premium growth.