M92 Exam Preparation Material | Insurance Business and Finance (IBF)

Prepare for the M92 with reliable study materials, practice questions, and key exam insights.

Prepare for the M92 Insurance Business and Finance (IBF) exam with CertQueen's independently developed study resources. Review important concepts, practice scenario-based questions, and use clear explanations to identify areas that require further study.

Question#1

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.
Where, if at all, in the annual report accounts, must a statement appear from the London based chairman of the retail group?

A. It must form part of the balance sheet.
B. It must form part of the directors’ report.
C. It must form part of the income statement.
D. It is not required.

Explanation:
A chairman's statement is not required in the annual report accounts in the manner suggested by the question. The compulsory financial statements and statutory reports are distinct from optional narrative statements that companies may include for communication with investors. It does not form part of the balance sheet, directors' report or income statement as a required accounting item .
Therefore, the correct answer is that it is not required.

Question#2

Which type of insurance company is always subject to the UK Corporate Governance Code?

A. An insurance company with an overseas subsidiary
B. A reinsurance company
C. An insurance company with a premium listing of equity shares in the UK
D. A life assurance company

Explanation:
An insurance company with a premium listing of equity shares in the UK is subject to the UK Corporate Governance Code. The Code is linked to listed-company governance expectations, not simply to being a reinsurer, life assurer or company with an overseas subsidiary. The premium-listed status triggers the governance reporting discipline, including board accountability, audit, risk, remuneration and shareholder-relations expectations.

Question#3

What is the primary purpose of an insurer using balanced scorecards?

A. To calculate its financial strength
B. To reduce its costs
C. To monitor the progress of plans
D. To calculate insurance premiums

Explanation:
A balanced scorecard is used to monitor progress against plans across a broader set of measures than financial results alone. It can combine financial, customer, process and learning indicators so management can assess whether the strategy is actually being delivered. It is not primarily a premium-calculation, cost-reduction or financial-strength-rating tool. The IBF emphasis is performance monitoring and strategic control.

Question#4

What is the role of rating agencies mentioned in the context of the financial strength of insurance companies?

A. To manage insurance company investments
B. To regulate insurance premiums
C. To assess and rate the financial strength of insurance companies
D. To provide insurance coverage to companies

Explanation:
Rating agencies assess and rate the financial strength of insurance companies. Their role is not to manage investments, regulate premiums or provide insurance cover; it is to form an independent opinion on the insurer's ability to meet policyholder obligations. In practice, brokers, corporate buyers, reinsurers and investors may use the rating as a signal of claims-paying strength, capital adequacy, earnings stability and enterprise risk management.

Question#5

Which UK companies must have Articles of Association?

A. Only those listed on the London Stock Exchange.
B. Only those which are private companies.
C. Only those with a turnover in excess of £1,000,000.
D. All those which are registered with Companies House.

Explanation:
All companies registered with Companies House must have Articles of Association. The articles set out the company's internal rules, including powers, governance processes, share rights and director arrangements. This requirement is not limited to listed companies, private companies or companies above a turnover threshold. It is part of the basic constitutional framework of registered companies.

Exam Code: M92
Q & A: 100 Q&As         Updated:  Sep 27,2026

 

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What This M92 Study Resource Helps You Do

Review Key Concepts

Review the technologies, products, processes, and practical skills covered by the current M92 exam objectives.

Practice Scenario-Based Questions

Work through independently developed questions designed to strengthen your understanding of technical scenarios and decision-making.

Identify Knowledge Gaps

Use your results and the provided explanations to find weaker areas and focus your study more effectively.

How to Use This M92 Preparation Material

Review the Exam Scope

Start by reviewing the topics covered by the M92 exam. Compare them with the official exam objectives to understand the required technologies, operational tasks, and practical skills, then identify the areas that deserve the most attention.

Practice Independently

Complete a focused set of practice questions for each topic. On your first attempt, avoid referring to notes, answers, or other study resources so that you can evaluate your current understanding more accurately.

Study the Explanations

Review the answers and explanations after completing each practice session. Understand why the correct option is appropriate for the given scenario and why the other options may be incorrect or less suitable.

Close Knowledge Gaps

Keep track of incorrect answers, unfamiliar concepts, and weaker knowledge areas. Review these topics using official documentation and practical experience, then answer the related questions again to reinforce your understanding and monitor your progress.

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Exam Code: M92
Q & A: 100 Q&As
Updated:  Sep 27,2026

 

 Access Complete M92 Preparation Material