Question No. 1

The key people involved in the application of good governance and risk management must:

I be trustworthy

II be honest

III be approved by the local regulator

IV treat others fairly at all times

AI, II, and III only

BIII only

CI, II, and IV only

DI, II, III and IV above

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Correct Answer: C

Question No. 2

According to PRMIA governance principles, boards and audit committees should ...

AReview compensation plans to ensure consistency with corporate risk appetite, competitive market conditions, and fiduciary responsibility to shareholders

BCollectively assume responsibility of understanding and reporting the effectiveness of the firm risk management infrastructure

CBe composed of key business unit representatives

DLeave shareholder accountability to senior management who decides strategic direction

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Correct Answer: A

Question No. 3

The early 2003 trading strategy of China Aviation oil was

Ato buy calls and sell puts

Bto buy puts and sell calls

Cto sell puts and buy calls

Dto sell calls and buy puts

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Correct Answer: A

Question No. 4

When local rules and regulations conflict with the PRMIA Standards of Best Practice, Conduct and Ethics the PRMIA member should ...

ASeek advice from a qualified party, being mindful of legal and confidentiality requirements

BModify the interpretation of local rules and regulations to meet the situation

CIgnore local rules and regulations

DRespect local rules and regulations

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Correct Answer: A

Question No. 5

Finite insurance is reinsurance which

Atransfers only a limited amount of risk at the usual reinsurance price

Btransfers the total risk at less cost than traditional reinsurance

Ctransfers the total risk at the usual reinsurance price

Dtransfers only a limited amount of risk at less cost than traditional reinsurance

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Correct Answer: D

Free PRMIA 8004 Exam Actual Questions

The questions for 8004 were last updated On Nov 16, 2024