Exam (elaborations)
CII - Cert - IF1 questions with 100% correct answers graded A+
- Course
- Institution
CII - Cert - IF1 questions with 100% correct answers graded A+
[Show more]
Content preview
CII - Cert - IF1 questions with 100%correct answers graded A+
The two regulatory bodies responsible for general insurance in the UK - correct answer ✔✔Prudential
Regulation Authority (PRA)
Financial Conduct Authority (FCA)
Risk management - correct answer ✔✔Consists of risk measurement and the means of attempting to
deal with the risks we face
Define insurance as a risk transfer method - correct answer ✔✔The accepting of an unknown future
potential risk by an insurer for an agreed premium
Meanings of the term risk - correct answer ✔✔- The peril or contingency that is insured - the fire risk,
the theft risk and so on
- The thing (or liability) actually insured. In this context the 'risk' could be a factory or a manufacturer's
liability to the public
- When an underwriter quotes for 'a risk' an even wider definition is implied. The underwriter will mean
both the thing insured, such as the property itself, and the range of
contingencies or scope of cover required
What is Airmic? - correct answer ✔✔Association of Insurance and Risk Managers in Industry and
Commerce
What is the focus of goof risk management? - correct answer ✔✔The identification and treatment of
defined risks and should be a continuous and developing process embedded in a firm's strategy. It should
address methodically all the risks surrounding the firm's current, past and future activities.
,Why is commercial risk management important? - correct answer ✔✔- It reduces the potential for loss
by identifying and managing hazards
- It gives shareholders a greater degree of confidence in a company's ability to manage its risks.
- It provides a disciplined approach to quantifying risks.
What are the three key steps in the risk management process which allow for informed decision about
the risks that a business faces? - correct answer ✔✔- Risk identification
- Risk analysis
- Risk control (including the possibility of risk transfer).
What is risk identification? - correct answer ✔✔Risk identification involves discovering the threats that
may already exist, and the potential threats that may exist in the future. Not all of these risks will be
insurable but they must all be managed.
What is risk analysis? - correct answer ✔✔Risk managers will examine past data to evaluate or analyse
the risk. Insurers will look at many of the same elements when considering the rating of a risk.
When should risk control be implemented? - correct answer ✔✔If a risk is seen to have the potential for
adverse consequences, some course of action should be put in place to control, reduce or even eliminate
the risk.
Three key aspects to the controlling of risk - correct answer ✔✔- Physical control measures
- Financial control measures
- Developing a good risk culture
, Three key categories for internal controls - correct answer ✔✔Detective controls - Detect errors or
irregularities that may have occurred
Corrective controls - Correct errors or irregularities that have been detected
Preventative controls - Keep errors or irregularities from occurring in the first place
What is the Motor Insurance Anti-Fraud and Theft Register (MIAFTR)? - correct answer ✔✔The register
records all details of vehicles and motorcycles that become total losses arising from any cause, including
fire and theft. Insurers that place information onto the register relating to a new claim will be advised if
the vehicle, claimant or the claimant's address matches existing data that is already present on the
register. Even if fraud is not discovered, previous claims may be disclosed that had not been advised by
policyholders when they took out their policy.
How is the level of risk assessed by insurers? - correct answer ✔✔In terms of both frequency and
severity
Example of high frequency and low severity of loss - correct answer ✔✔Motor Insurance
Example of low frequency and high severity of loss - correct answer ✔✔Oil spillages
Describe the relationship between frequency and severity - correct answer ✔✔Inverse
Define a peril - correct answer ✔✔That which gives rise to a loss
Define a hazard - correct answer ✔✔That which influences the operation or effect of the peril
Give four example of peril - correct answer ✔✔- Explosion
- Lightning
- Collision
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now