CII M92 : Insurance Business and Finance (IBF)

  • Exam Code: M92
  • Exam Name: Insurance Business and Finance (IBF)
  • Updated: Oct 15, 2026     Q & A: 84 Questions and Answers

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CII M92 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Underwriting and Pricing20-25- Claims handling overview
- Underwriting principles and process
- Pricing factors and methods
- Risk assessment and classification
Topic 2: Financial Management of Insurers25-30- Premium reserves and claims reserves
- Financial statements and accounts
- Capital management and solvency
- Investment management
- Solvency II framework
Topic 3: Legal and Regulatory Requirements15-20- Conduct of business regulation
- Data protection and compliance
- Prudential regulation
- Consumer protection requirements
Topic 4: The Insurance Market and Business Environment20-25- Regulatory and legal framework
- Structure of the insurance market
- Insurance intermediaries and distribution channels
- Market competition and segmentation
Topic 5: Business Strategy and Operations10-15- Product development and management
- Customer service and relationship management
- Strategic planning for insurers
- Technology and digital transformation

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. earned an amount of income which is balanced by an increase in cash.
  • B. created a new liability that reduces equity.
  • C. revalued its fixed assets.
  • D. paid a claim and reduced its asset base.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #2

Who would be responsible for compliance of the claims function if the activity was outsourced to a specialist claims-handling company?

  • A. The specialist claims-handling company solely.
  • B. The broker who placed the business.
  • C. The insurer would be solely responsible.
  • D. The policyholder.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #3

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

  • A. An assessment of stock price growth potential
  • B. A measure of it's ability to pay claims
  • C. A guarantee of policyholder dividends
  • D. A measure of its market share
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

The chief actuary of an insurance company is usually responsible for what?

  • A. Managing the sales and marketing team
  • B. Financial accounting and tax reporting
  • C. Supervising the internal audit function
  • D. Technical pricing of new and existing products
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #5

The use of claims development tables provides valuable information about the...?

  • A. prior estimates of outstanding amounts.
  • B. technical price for new business.
  • C. speed of claim payments.
  • D. current market share.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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