1. The significant risk that is transferred from the policyholder to the issuer of an insurance contract is: a. Lapse or persistency risk b. Financial risk c. Expense risk d. Insurance risk 2. Under the general model of PFRS 17, a group of insurance contracts is initially measured at: a. The fulfillment cash flows b. The contractual service margin c. Either a or b d. Both a and b 3. A group of insurance contracts is subsequently measured at: a. The liability for remaining coverage b. The liability for incurred claims c. Either a or b d. Both a and b 4. According to PFRS 17, an insurance contract is NOT derecognized when: a. Expired b. Terms have been modified, and the modification is not substantive c. Terms have been modified, and the modification is substantive d. Extinguished 5. According to PFRS 17, an accounting service result is recognized in: a. Profit or loss b. Other comprehensive income c. Statement of financial position d. Partly in profit or loss, and partly in other comprehensive income Use the following for the next two (2) questions: Mr. Coco obtains life insurance from Entity Y (an insurance company). Entity Y cedes the insurance contract with Mr. Coco to Entity Z, another insurance company. 6. The contract between Entity Y and Entity Z is a/an: a. Direct insurance contract b. Reinsurance contract c. Indirect insurance contract d. Retrocession 7. The contract between Mr. Coco and Entity Y is a/an: a. Direct insurance contract b. Reinsurance contract c. Indirect insurance contract d. Retrocession 8. This refers to the legal principle that the insured is compensated for the loss he incurred and reverted to his previous financial condition before the loss event. a. Principle of insurable interest b. Principle of loss minimization c. Principle of indemnity d. Principle of subrogation 9. This refers to the legal principle that all material facts concerning an insurance contract must be made known to the contracting parties. a. Principle of utmost good faith b. Principle of full disclosure c. Principle of contribution d. Principle of indemnity 10. 123 Insurance Co. issues a group of insurance contracts on December 19,20x1. The coverage period of the group starts on January 1, 20x2, and the first premium from a policyholder in the group is due on December 30, 20x2. The group of insurance contracts is not onerous. When is the recognition date of the group of insurance contracts issued? a. December 19, 20x1 b. December 30, 20x1 c. January 1, 20x2 d. December 30, 20x2
1. The significant risk that is transferred from the policyholder to the issuer of an insurance contract is:
a. Lapse or persistency risk
b. Financial risk
c. Expense risk
d. Insurance risk
2. Under the general model of PFRS 17, a group of insurance contracts is initially measured at:
a. The fulfillment cash flows
b. The contractual service margin
c. Either a or b
d. Both a and b
3. A group of insurance contracts is subsequently measured at:
a. The liability for remaining coverage
b. The liability for incurred claims
c. Either a or b
d. Both a and b
4. According to PFRS 17, an insurance contract is NOT derecognized when:
a. Expired
b. Terms have been modified, and the modification is not substantive
c. Terms have been modified, and the modification is substantive
d. Extinguished
5. According to PFRS 17, an accounting service result is recognized in:
a. Profit or loss
b. Other comprehensive income
c. Statement of financial position
d. Partly in profit or loss, and partly in other comprehensive income
Use the following for the next two (2) questions:
Mr. Coco obtains life insurance from Entity Y (an insurance company). Entity Y cedes the insurance contract
with Mr. Coco to Entity Z, another insurance company.
6. The contract between Entity Y and Entity Z is a/an:
a. Direct insurance contract
b. Reinsurance contract
c. Indirect insurance contract
d. Retrocession
7. The contract between Mr. Coco and Entity Y is a/an:
a. Direct insurance contract
b. Reinsurance contract
c. Indirect insurance contract
d. Retrocession
8. This refers to the legal principle that the insured is compensated for the loss he incurred and reverted to
his previous financial condition before the loss event.
a. Principle of insurable interest
b. Principle of loss minimization
c. Principle of indemnity
d. Principle of subrogation
9. This refers to the legal principle that all material facts concerning an insurance contract must be made
known to the contracting parties.
a. Principle of utmost good faith
b. Principle of full disclosure
c. Principle of contribution
d. Principle of indemnity
10. 123 Insurance Co. issues a group of insurance contracts on December 19,20x1. The coverage period of
the group starts on January 1, 20x2, and the first premium from a policyholder in the group is due on
December 30, 20x2. The group of insurance contracts is not onerous. When is the recognition date of the
group of insurance contracts issued?
a. December 19, 20x1
b. December 30, 20x1
c. January 1, 20x2
d. December 30, 20x2
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