GEN 2A Sample
Questions
Sample Multi-Choice
Questions
Sample Question

A
B
C
D
Which regulatory tool is used to ensure assets are more
than adequate to meet liabilities?
Deposit requirement
Reserve requirement
Capital requirement
Right of examination
Answer

A
B
C
D
Which regulatory tool is used to ensure assets are more
than adequate to meet liabilities?
Deposit requirement
Reserve requirement
Capital requirement
Right of examination
Answer: C
Sample Question

The Motor Insurance Advisory Board (MIAB) recommended
which of the following measures?
A Greater use of experts in legal cases
B Earlier communication of renewal terms to motor
policyholders
C Guidelines on damages to apply to the Personal Injuries
Assessment Board (PIAB)
D An increase in the solvency margins of authorised motor
insurers
Answer

The Motor Insurance Advisory Board (MIAB) recommended
which of the following measures?
A Greater use of experts in legal cases
B Earlier communication of renewal terms to motor
policyholders
C Guidelines on damages to apply to the Personal Injuries
Assessment Board (PIAB)
D An increase in the solvency margins of authorised motor
insurers
Answer: C
Sample Question

A
B
C
D
Member States of the European Union are not permitted to
grant authorisation to an insurance undertaking where
there are any close links:
with any other commercial enterprise
with any other business unless there are common directors
appointed to each entity
with any other business unless prior notification is given to
the regulator
with any other business unless they do not prevent
effective supervision
Answer
Member States of the European Union are not permitted to
grant authorisation to an insurance undertaking where
there are any close links:
A with any other commercial enterprise
B with any other business unless there are common directors
appointed to each entity
C with any other business unless prior notification is given to
the regulator
D with any other business unless they do not prevent
effective supervision
Answer: D

Sample Question

A
B
C
D
An insurer’s solvency margin is reduced by reinsurance
provision, but up to what maximum limit?
10%
25%
50%
75%
Answer

A
B
C
D
An insurer’s solvency margin is reduced by reinsurance
provision, but up to what maximum limit?
10%
25%
50%
75%
Answer: C
Sample Question

A
B
C
D
If a Non-Life insurer fails to maintain an adequate solvency
margin, what power is given to the Financial Regulator (FR)
by virtue of the 1994 Non-life framework regulations?
Imposition of a fine
Control over the disposal of assets
Publicising the inadequacy in the National press
Withdrawal of authorisation
Answer

A
B
C
D
If a Non-Life insurer fails to maintain an adequate solvency
margin, what power is given to the Financial Regulator (FR)
by virtue of the 1994 Non-life framework regulations?
Imposition of a fine
Control over the disposal of assets
Publicising the inadequacy in the National press
Withdrawal of authorisation
Answer: B
Sample Question

Under the terms of the Insurance Acts what action (if any) can the
Financial Regulator (FR) take if it feels that a person proposed as
director of an authorised Non-Life insurer is not suitably qualified to
hold that office?
A None. Effectively the Financial Regulator (FR) can only advise
B The Financial Regulator (FR) has the right to investigate but may
then only offer advice to the Non-Life insurer
C The Financial Regulator (FR) can impose a time delay but not
prohibit the appointment entirely
D The Financial Regulator (FR) can prohibit the appointment
Answer

Under the terms of the Insurance Acts what action (if any) can the
Financial Regulator (FR) take if it feels that a person proposed as
director of an authorised Non-Life insurer is not suitably qualified to
hold that office?
A None. Effectively the Financial Regulator (FR) can only advise
B The Financial Regulator (FR) has the right to investigate but may
then only offer advice to the Non-Life insurer
C The Financial Regulator (FR) can impose a time delay but not
prohibit the appointment entirely
D The Financial Regulator (FR) can prohibit the appointment
Answer: D
Sample Question

A
B
C
D
Which of the following methods of terminating an agency
may lead to a breach of contract by the agent?
Performance
Revocation
Renunciation
Frustration
Answer

A
B
C
D
Which of the following methods of terminating an agency
may lead to a breach of contract by the agent?
Performance
Revocation
Renunciation
Frustration
Answer: C
Sample Question

Which of the following statements highlights a key difference
between Multi-agency intermediaries and Authorised Advisors?
A The Multi-agency intermediary has a more onerous regulatory
responsibility than an Authorised Advisor
B The Multi-agency intermediary cannot hold client money; an
Authorised Advisor can
C The Multi-agency intermediary may provide advice only on those
products from providers with whom it holds an agency appointment;
an Authorised Advisor’s remit is wider
D An Authorised Advisor’s role is better suited to operating with a
limited number of insurers than a Multi-agency Intermediary
Answer

Which of the following statements highlights a key difference
between Multi-agency intermediaries and Authorised Advisors?
A The Multi-agency intermediary has a more onerous regulatory
responsibility than an Authorised Advisor
B The Multi-agency intermediary cannot hold client money; an
Authorised Advisor can
C The Multi-agency intermediary may provide advice only on those
products from providers with whom it holds an agency appointment;
an Authorised Advisor’s remit is wider
D An Authorised Advisor’s role is better suited to operating with a
limited number of insurers than a Multi-agency Intermediary
Answer: C
Sample Question

A
B
C
D
The Financial Regulator’s (FR) guidance notes for retail
investment products in relation to the Criminal Justice Act
1994 relate to what subject?
Accounting practices
Money laundering
Competition
Data Protection
Answer

A
B
C
D
The Financial Regulator’s (FR) guidance notes for retail
investment products in relation to the Criminal Justice Act
1994 relate to what subject?
Accounting practices
Money laundering
Competition
Data Protection
Answer: B
Sample Question

Which of the following statements is true regarding the
Consumer Information Act 1978?
A The Act is of general application and has no specific
insurance requirements
B The Act gives insurers and policyholders equal rights
C The Act is concerned with the release of personal
information to other parties
D The Act creates offences for insurers that make false
statements
Answer

Which of the following statements is true regarding the
Consumer Information Act 1978?
A The Act is of general application and has no specific
insurance requirements
B The Act gives insurers and policyholders equal rights
C The Act is concerned with the release of personal
information to other parties
D The Act creates offences for insurers that make false
statements
Answer: D
Sample Problem
Question
Sample Problem
Question

ABC, an insurer established in Ireland, wish to extend their market
and offer insurance in the United Kingdom. The insurer specialises in
commercial property business.
Problem Question A

When ABC consider how to develop in the UK market, which of the
following means would be controlled by the Irish Financial Regulator
(FR) with the least permissible UK regulatory intervention?
A
B
C
D
Passporting into the UK
Opening a branch office in the UK
Purchasing an existing UK insurer as a subsidiary
Operating through an intermediary based in the UK
Problem Question B

If ABC decides to operate on a freedom of services basis in the UK
which of the following must occur first?
A Advising the Financial Regulator (FR) of the intention to open the
Branch
B Advising the UK Regulator of the intention to open the Branch
C Setting up the branch as a going concern
D Printing of stationery and opening of appropriate bank accounts
Problem Question C

If ABC decide to proceed on the basis of freedom of services, how
soon must the Financial Regulator (FR) advise the UK authorities of
this fact?
A
B
C
D
Within 15 days
Within 1 month
Within 6 weeks
Within 3 months
Problem Question D

If ABC wish all insurance contracts to be subject to Irish law, which of
the following statements is true?
A The Second Non-Life Insurance Directive allows ABC to choose
entirely at their discretion, provided the fact is made clear in
documentation
B The Second Non-Life Insurance Directive insists that English or
Scots law applies in order to protect the consumer
C If UK law permits another system of law to operate, ABC is free to
choose Irish law to govern the interpretation, otherwise, English or
Scots law would apply
D The UK regulatory authorities would need to give prior approval for
Irish law to apply to the interpretation of UK issued policies
Problem Question E

When ABC consider their investment policy which of the following
statements is true?
A ABC are free to choose any reasonable investment for funds
regardless of currency
B A fixed proportion (25%) of assets must be held in GB£
C ABC must match liabilities and assets denominated in GB£
D ABC must maintain the investment mix originally advised to the
Financial Regulator (FR) when originally applying to carry on
business in Ireland
Answers to Problem
Question
 1A – Answer: B
 1B – Answer: A
 1C – Answer: B
 1D – Answer: C
 1E – Answer: C