IIA-CFSA Exam Questions

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that co...

It is a characteristic of insurance policy according to which the insured decides whether or not to pay the premium to be covered by the policy. If the insured pays the premium, th...

Insurance contracts are also considered ____________ in that they are legal documents that required the insurer to pay if covered events occur. Because the insurance company create...

Insurance companies assist individuals in managing personal risk through risk pooling. Risk pooling is based on fact that the probability of any one type of loss occurring for a gi...

Whole life policies accrue a cash value that the insurer must surrender to the policyholder if the policy does not remain in force until the policyholder's death. The actual cash v...

Whole life policies offer lifetime coverage at a level premium rate that does not increase as the insured ages. Whole life policies are classified in all of the below mentioned cat...

_____________ insures two lives under one policy. Death benefits are paid to the surviving insured. The surviving insured usually has the option of purchasing an individual whole l...

These policies provide a death benefit when the insured dies during a specified period. The term of this type of policy is usually not less than one year, but may be up to 40 years...

For example, $50,000 five-year policy might decrease to $40,000 in benefits payable the second year, to $30,000 the third year, to $20,000 the fourth year, and to $10,000 in the fi...

Universal life policies are a form of permanent life insurance that has flexible premiums, flexible face amounts, and separate pricing for the three major pricing categories. Which...

Purchasers of universal life policies specify the policy's face amount and whether the death benefit will be level or vary as the policy's cash value changes. Under level death ben...

____________insurance provides a specified benefit amount in either of the following cases: If the insured survives to the maturity date of the policy is reached. If the insured di...

General liability insurance covers the major liability exposure of a business, including lawsuits against an organization's facilities or products. General liability insurance does...

__________pays damaged insured by the injured and the insured's passenger when injured in an auto accident caused by a motorist without liability insurance. The coverage also cover...

Homeowner policies combine property and casualty coverage into the same policy (known as multi- line policies). Homeowner policies provide four types of property coverage. All of t...

It provides additional living expenses when the home is unlivable, so home owners can continue to rented rooms at a hotel, restaurant meals, and laundry expenses. What is it?

Personal liability covers claims for bodily injury or property damage caused by the insured. And, Medical payment provides a low level of medical payment to help avoid legal action...

Foreign currency futures contracts may be legitimately traded either on a recognized futures exchange or in the ___________, which generally involves trading between large institut...

These occur when two parties trade currencies at a mutually agreed upon exchange rate. One trader calls another trader asking for the price of a particular currency, and the second...

Audits of foreign exchange transactions may include of the following objectives and tasks EXCEPT:

Asset/liability management is a planning tool designed to maximize earnings. ALM tries to create optimal risk/reward decisions and focuses on creating prices that achieve a desired...

The tax implications are to be considered in case of life insurance. As, you can take out in chunks to supplement the income, and minimize tax burden, while keeping the majority st...

Main areas within financial services are:

Which one of the following Factors does NOT ensure the financial health and security of the organization?

The companies strive to improve customer acquisition, services and retention through the use of following methods EXCEPT:

Sarbanes Oxley and bases are:

Financial services organizations are challenged to provide responsible fiduciary management while:

All of the following are financial instrument EXCEPT:

The term umbrella market segmentation is referred to:

Some of the countries that do not permit companies to use IAS without a reconciliation to domestic generally accepted accounting principals are all EXCEPT:

Basel II aims to improve the security and long-term viability of the financial system by focusing on bank's _________

The enterprise- wide risk management approach focuses both on familiar financial risks and harder to measure--though equally important:

New Zealand's major trading partners are in the process of adopting or have already adopted, the international's accounting standards this includes all EXCEPT:

The accounting standards in the United State are:

The EU saving Directive is aimed at effective taxation of saving income in the form of:

Following are the EU Saving Directives paying agents EXCEPT:

EFRAG is the abbreviation of:

The risks associated with operating objectives include all of the following EXCEPT:

Risks associated with compliance with laws and regulations may actually _________ impact ________ in ________. Choose the correct set.

Risk assessment may be:

An intelligent risks management platform approaches risk from the:

All the statements mentioned below are clear and compelling business benefits of a strategic approach to enterprise-wide risk intelligence; EXCEPT:

Basel Accord II 's addition to key factors that an organization encounters is:

Asset Management is the term usually given to describe companies that run manual Funds. The largest are those who provide:

The most common index funds tries to tracks the S&P 500 by purchasing all 500 stocks using the same percentage as the index. Other indices that mutual funds try to copy include all...

The primary mechanism for estimating potential losses is mathematical methodology, value at risk ("VaR") which estimates the exposure to market risk:

Known limitations of VaR methodology include the fact that changes in market may not tend to normal distribution (specifically, that very large movements are more likely than predi...

Which one of the following is common misinterpretation during the calculation of VaR

Historical simulation and model based approach are the methods to calculate:

Default risk is an alternate term used for: