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CII M92 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Understand the structure of the insurance industry | 10% | - Main sectors and participants - Market distribution channels - Regulatory framework and bodies |
| Topic 2: Understand insurance company accounts and standards | 10% | - Statutory and regulatory reporting - Specific accounting rules for insurers - Solvency and capital reporting |
| Topic 3: Case studies integrating all learning outcomes | 10% | |
| Topic 4: Understand corporate governance principles | 12% | - Compliance and ethical requirements - Risk management frameworks - Governance structures and responsibilities |
| Topic 5: Understand roles and functions within insurance organisations | 8% | - Key departments and their interactions - Professional roles and responsibilities |
| Topic 6: Analyse business performance using financial ratios | 10% | - Interpretation and limitations of ratios - Solvency and liquidity measures - Profitability and efficiency ratios |
| Topic 7: Understand financial strength of insurance companies | 10% | - Capital adequacy requirements - Rating agencies and financial assessments - Reserving and risk capital |
| Topic 8: Understand insurance business management | 12% | - Underwriting and claims processes - Operational activities and controls - Business objectives and strategy |
| Topic 9: Understand accounting principles and application | 18% | - Basic accounting concepts and standards - Asset and liability recognition - Income, expenditure and profit measurement |
CII Insurance Business and Finance (IBF) Sample Questions:
Question 1
An insurance company uses the double-entry accounting principle for recording insurance transactions to reflect that it has
A. paid a claim and reduced its asset base.
B. earned an amount of income which is balanced by an increase in cash.
C. revalued its fixed assets.
D. created a new liability that reduces equity.
Question 2
The calculation kernel is an essential element of
A. A management information system's control cycle.
B. The double-entry accounting system.
C. The Solvency II internal model capital assessment.
D. Activity-based costing.
Question 3
For what transactions are debit notes raised?
A. Only for claims payments to third parties.
B. All amounts owed to the business by other parties.
C. For all incoming cash payments from policyholders.
D. When transactions are settled in a foreign currency.
Question 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. Reduced its equity by paying a dividend.
C. Received a payment for a claim.
D. Earned an amount of income which is balanced by an increase in cash.
Question 5
Under which Act would it be a civil offence if Mark were to sell his shares following information obtained in May?
A. Financial Services and Markets Act 2000
B. The Bribery Act 2010
C. Data Protection Act 2018
D. Companies Act 2006
Solutions:
| Question 1 Answer: B | Question 2 Answer: C | Question 3 Answer: B | Question 4 Answer: D | Question 5 Answer: A |




