Free Practice Questions for the CII Certificate in Insurance M92 Exam (2026 Updated)
At Marks4sure, we are dedicated to providing IT professionals with the most accurate and reliable preparation materials for the CII M92 exam. To support your certification journey, we have made a selection of our premium 2026 Certificate in Insurance practice questions and answers available completely free. You can take this practice test as many times as you need. Every question includes a detailed, expertly verified explanation to ensure you fully grasp the core security concepts before test day.
An insurer has recently expanded because employee numbers have increased following the acquisition of a specialist firm of loss adjusters. The insurer aims to provide an enhanced claims service.
The insurer operates a system whereby each department sets its own budget for a 12-month period.
This is incorporated into a company budget by Janet, the finance director, who will allow some budgeting changes to be made if actual costs unexpectedly change during the financial period. The budget is used by senior management as part of its management accounting process to plan its objectives and to assess whether these objectives are being met. Janet as the finance director is also responsible for all the insurer’s financial accounts.
The financial accounts which Janet produces differs to the management accounts that are produced internally within the insurer. This is because the financial accounts.
An insurer has recently expanded because employee numbers have increased following the acquisition of a specialist firm of loss adjusters. The insurer aims to provide an enhanced claims service.
The insurer operates a system whereby each department sets its own budget for a 12-month period.
This is incorporated into a company budget by Janet, the finance director, who will allow some budgeting changes to be made if actual costs unexpectedly change during the financial period. The budget is used by senior management as part of its management accounting process to plan its objectives and to assess whether these objectives are being met. Janet as the finance director is also responsible for all the insurer’s financial accounts.
The acquisition by the insurer is an example of
Tina is the newly-appointed chief executive officer of an insurance company. She has been tasked with turning the business around to a more profitable concern as it has been experiencing difficult trading conditions.
Tina leads the Board of the company, which comprises the usual executive roles. She realises that a radical shake up of the business is required which, for a time, will require new working regimes and tight deadlines if the new targets set by the Board are to be achieved.
Currently recorded written premiums are £90,000,000 and earned premiums are £95,000,000.
When conducting a benchmarking exercise against similar-sized competitors, it is found that whilst the combined ratio compares favourably, the company’s return on capital employed is significantly lower.
The sales director suggests that the claims function could be outsourced to a specialist-claims handling service provider under the terms of a service level agreement stipulating that compliant standards of service are maintained. In doing so this would free up resources to enable the company to concentrate on core activities and that new business could grow significantly if the current 30-day period of credit given to brokers was extended to 90 days.
Which management style would be best for Tina to adopt during this period of radical change?
John is considering whether to buy shares in a listed insurance company. His neighbour, Mary, works in the company’s finance department and provides John with a copy of the latest report and accounts. John notes that the company has negotiated some new loans. He calculates the return on equity and the liquidity ratios.
Mary explains to John that the company has an organic growth plan to increase revenue by 30%.
The company’s liquidity ratio will show the relationship of
Insurer X is a multinational company and insurer Y is a global company. This means that only
The chief executive officer of a large insurance company wishes to review its solvency margin.
From which financial document will he obtain the necessary information?
What is the primary basis of law and practice on which candidates will be examined?
An insurer has recently expanded because employee numbers have increased following the acquisition of a specialist firm of loss adjusters. The insurer aims to provide an enhanced claims service.
The insurer operates a system whereby each department sets its own budget for a 12-month period.
This is incorporated into a company budget by Janet, the finance director, who will allow some budgeting changes to be made if actual costs unexpectedly change during the financial period. The budget is used by senior management as part of its management accounting process to plan its objectives and to assess whether these objectives are being met. Janet as the finance director is also responsible for all the insurer’s financial accounts.
At what level of information will the insurer’s overall budget be categorised?
An insurer has recently expanded because employee numbers have increased following the acquisition of a specialist firm of loss adjusters. The insurer aims to provide an enhanced claims service.
The insurer operates a system whereby each department sets its own budget for a 12-month period.
This is incorporated into a company budget by Janet, the finance director, who will allow some budgeting changes to be made if actual costs unexpectedly change during the financial period. The budget is used by senior management as part of its management accounting process to plan its objectives and to assess whether these objectives are being met. Janet as the finance director is also responsible for all the insurer’s financial accounts.
Janet’s essential role within the insurer is best described as
Mark is employed as a risk manager in the London office of a large multinational retail group, which is listed on the London Stock Exchange. Mark has some shares in the company. The multinational retailer’s main offices are located in London with subsidiary companies based in New York, Paris, Frankfurt and Dubai.
The London office has arranged to transfer part of the group insurance risk to an insurer, owned by the group, based in Dublin.
The annual accounts of the London office are compiled each year to International Financial Reporting Standards.
On 5 May Mark is on an insider list and learns that the London office is undergoing serious financial issues. The company is looking to sell off overseas businesses, including the New York office, to release equity.
The London office is a large multi-storey office block purchased using a bank loan. The company have agreed to pay back the loan over the next 15 years.
Under which Act would it be a civil offence if Mark were to sell his shares following information obtained in May?
Tina is the newly-appointed chief executive officer of an insurance company. She has been tasked with turning the business around to a more profitable concern as it has been experiencing difficult trading conditions.
Tina leads the Board of the company, which comprises the usual executive roles. She realises that a radical shake up of the business is required which, for a time, will require new working regimes and tight deadlines if the new targets set by the Board are to be achieved.
Currently recorded written premiums are £90,000,000 and earned premiums are £95,000,000.
When conducting a benchmarking exercise against similar-sized competitors, it is found that whilst the combined ratio compares favourably, the company’s return on capital employed is significantly lower.
The sales director suggests that the claims function could be outsourced to a specialist-claims handling service provider under the terms of a service level agreement stipulating that compliant standards of service are maintained. In doing so this would free up resources to enable the company to concentrate on core activities and that new business could grow significantly if the current 30-day period of credit given to brokers was extended to 90 days.
If the company were to adopt both of the sales director’s proposals, what would be the most likely consequence?
Independent companies overseeing underwriting for business syndicates are known as:
Which type of insurance company is always subject to the UK Corporate Governance Code?
When depreciation is shown in a company’s financial accounts, accounting concepts require that this represents the:
Which financial ratio gives an indication of an insurer’s underwriting year performance?
When looking at the financial strength of an insurance company, a rating agency’s methodology takes into account the company’s capital adequacy which represents its
What specific classification was included in the credit rating agency’s assessment of the insurer?
John is considering whether to buy shares in a listed insurance company. His neighbour, Mary, works in the company’s finance department and provides John with a copy of the latest report and accounts. John notes that the company has negotiated some new loans. He calculates the return on equity and the liquidity ratios.
Mary explains to John that the company has an organic growth plan to increase revenue by 30%.
What information has John used to calculate the return on equity?
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