CIIG Certificate - independent subject foundations study guide
CIIG Certificate - independent subject foundations · Work through your exam, one topic at a time.
This independent study page provides practice for CIIG Certificate - independent subject foundations. Its editorial learning areas include Risk transfer, policy analysis, underwriting and claims; Insurer financial statements, reserves and performance models; Market, credit, liquidity and model-risk reasoning; Business strategy. The questions develop subject knowledge and application through worked reasoning, distinctions between competing answers, and practical scenarios. Study the relevant guide before attempting a mixed set, then explain the evidence or calculation that supports each answer. Topics on this exam: Risk transfer, policy analysis, underwriting and claims, Insurer financial statements, reserves and performance models, Market, credit, liquidity and model-risk reasoning, and Business strategy. The CIIG Certificate - independent subject foundations study guide has 4 sections and about 2,224 words.
01Risk transfer, policy analysis, underwriting and claims
Insurance involves a contract allocating specified financial consequences of uncertain events. Identify the insured interest, parties, covered event, period, territory, limit, exclusions and duties from the actual wording. A premium purchases the defined protection rather than a promise to pay every loss. General concepts such as indemnity, insurable interest, subrogation and contribution help analyze some contracts, but their legal application and exceptions depend on the jurisdiction and product.
458 words, about 2 min02Insurer financial statements, reserves and performance models
An insurer receives premiums, carries obligations for coverage and claims, incurs expenses and invests assets. These activities create timing differences between cash receipts, earned amounts, reported claims, settlement and final outcomes. Distinguish written, earned and unearned premium in the specified accounting model. Premium received today is not automatically wholly earned income today.
455 words, about 2 min03Market, credit, liquidity and model-risk reasoning
Financial risk concerns uncertain outcomes that affect objectives, resources or obligations. Define the exposure, horizon, unit of measurement and decision before choosing a metric. Market risk arises from changing prices, rates, spreads or exchange values; credit risk concerns default or deterioration; liquidity risk concerns meeting obligations or trading without excessive cost. Operational risk can arise from people, systems, processes and external events.
450 words, about 2 min04Business strategy
This chapter examines strategic analysis, choice and implementation. You must connect analytical models to a firm's resources, competitive environment and stakeholders, then evaluate whether a proposal is suitable, acceptable and feasible. Strategy is the long-term direction of the whole organisation. It may be deliberate or emergent; Mintzberg argues that intended strategies are reshaped by experience.
861 words, about 4 min