Free Access PRMIA.8009.v2022-03-04.q40 Practice Test (Page 2)

Question 1

Which of the following are PRMIA Governance Principles?
I. Independence of Key Parties
II. Disclosure and Transparency
III. Internal Validation
IV. Solvency

A.All are PRMIA Governance Principles

B.I and II only

C.I, II and IV only

D.I, II and III only

Question 2

The "Renewing the Dream" program signed into law by President George W Bush in 2002 was designed to

A.Allow risky, high-cost loans to be credited towards affordable housing goals

B.Provide tax credits of nearly US$2.4 billion over the next 5 years to investors and builders who developed affordable single-family housing in poor and distressed areas

C.Recapitalise Fannie Mae and Freddie Mac with US$2.4 billion of additional capital to ensure they weathered the risks associated with any future downturn in the housing markets

D.Provide grants of US$800 million to help home buyers with down-payment and closing costs

Question 3

The Fortress Re accounting risk transfer procedures

A.made it difficult for TFMI to determine whether risk had actually been transferred so they had to take out additional catastrophe insurance cover

B.made it straightforward for TFMI to determine whether risk had actually been transferred and they decided not to take out more catastrophe insurance cover

C.made it straightforward for TFMI to determine when the risk had been transferred and to take out additional catastrophe insurance cover

D.made it difficult for TFMI to determine whether risk had actually been transferred and whether it had sufficient catastrophe insurance cover

Question 4

The Basic Knowledge a PPRMIA member should comply with, as stipulated within the PRMIA Standards of Best Practice, Conduct & Ethics, is to

A.only possess the required skills and/or certification to complete the risk assessment / management work at hand

B.learn from a qualified risk management practitioner

C.maintains and improve their professional competence and strive to maintain and improve the competence of other risk professionals

D.only improve their PERSONAL professional competence

Question 5

The Financial Accounting and Reporting Infrastructure of any organization must:
I. Accurately represent the corporation's current and known financial condition in a timely manner II. Only use off-balance sheet transactions which have a legitimate economic, tax, risk transfer or risk mitigating purpose III. Provide a detailed description of the Risk Management Infrastructure in the organization's Annual Report to Shareholders IV. Provide an auditable Annual Statement of Compliance with the Board's publicly stated Standards of Corporate Governance to the Board and Audit Committee

A.I, III and IV only

B.I and III only

C.All of these are expected of the Financial Accounting and Reporting Infrastructure