LOMA 291 Module 4 Exam Questions
and Answers 100% Pass
At a typical insurance company, which of the following areas are part of financial
operations? Choose all that apply.
a. Accounting and financial reporting
b. Treasury operations
c. Information technology
d. Investment operations
e. Internal audit - ✔✔A, B, D, & E- All of these areas—except for information
technology—are part of a typical insurance company's financial operations. Although
the IT department plays an essential role in maintaining the quality of the data
provided to financial managers, it is not technically part of financial operations.
Board and Executive Roles
The financial management function - ✔✔Provides information to stakeholders
Ensures that financial obligations are met
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,Ensures compliance with complex financial regulations
Generates adequate returns for the company's owners and customers
Role of the Board of Directors - ✔✔- Investment committee: The investment committee
sets Forthright's investment policy and oversees investment operations.
- Audit/risk committee: The audit/risk committee directs Forthright's audit and
internal control function.
The role of the Ceo - ✔✔I approve our budget numbers. Then I manage our resources—
in line with budget guidelines and all current laws and regulations.
Technically I'm responsible for directing financial objectives and strategies, but I
delegate most of these responsibilities to senior financial officers.
However, make no mistake, the buck stops here! We are a publicly held company.
Investors, customers, and regulators can, and should, hold me responsible for our
financial results.
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,The role of the CFO - ✔✔As CFO, I report to Grace Avon, our CEO. I work closely with
company directors to develop corporate goals and strategies. I coordinate, monitor, and
direct Forthright's financial activities.
That covers a lot of territory. In the financial world, information quality and accuracy
are critically important—I work closely with IT to make sure we get that right. That
information has to be communicated to company managers and external parties. When
we need to raise funds—that's also my job.
Last, but not least, strong financial controls and measurement tools are absolutely
essential.
Financial Management Operating Units - ✔✔Specific job titles and organizational
structures vary according to a company's unique needs, but all insurers must perform
certain core financial functions, as shown below.
An organization chart. Under Financial Operations are Accounting and Financial
Reporting, Treasury Operations, and Investment Operations. Separate is Internal Audit.
An insurance company's investment committee directs the company's internal audit
and control function.
a. True
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, b. False - ✔✔A company's internal audit and control function is directed by the
audit/risk committee. The investment committee sets the company's investment policy
and oversees investment operations.
Let's look at how Forthright Financial organizes its financial operations, starting with its
accounting and financial reporting function.
accounting - ✔✔A system or set of rules and methods for collecting, recording,
analyzing, summarizing, and reporting financial information.
financial reporting - ✔✔The process of presenting financial data about a company's
financial position, operating performance, and flow of funds.
The controller - ✔✔responsible for the timely and accurate collection and reporting of
all of Forthright's financial data
The accounting function:
Records, tracks, and reports on financial transactions
Coordinates the budget process and oversees expense analysis
Prepares financial statements and reports for external users
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and Answers 100% Pass
At a typical insurance company, which of the following areas are part of financial
operations? Choose all that apply.
a. Accounting and financial reporting
b. Treasury operations
c. Information technology
d. Investment operations
e. Internal audit - ✔✔A, B, D, & E- All of these areas—except for information
technology—are part of a typical insurance company's financial operations. Although
the IT department plays an essential role in maintaining the quality of the data
provided to financial managers, it is not technically part of financial operations.
Board and Executive Roles
The financial management function - ✔✔Provides information to stakeholders
Ensures that financial obligations are met
100% Pass Guarantee Emilly Charlotte, All Rights Reserved © 2025 1
,Ensures compliance with complex financial regulations
Generates adequate returns for the company's owners and customers
Role of the Board of Directors - ✔✔- Investment committee: The investment committee
sets Forthright's investment policy and oversees investment operations.
- Audit/risk committee: The audit/risk committee directs Forthright's audit and
internal control function.
The role of the Ceo - ✔✔I approve our budget numbers. Then I manage our resources—
in line with budget guidelines and all current laws and regulations.
Technically I'm responsible for directing financial objectives and strategies, but I
delegate most of these responsibilities to senior financial officers.
However, make no mistake, the buck stops here! We are a publicly held company.
Investors, customers, and regulators can, and should, hold me responsible for our
financial results.
100% Pass Guarantee Emilly Charlotte, All Rights Reserved © 2025 2
,The role of the CFO - ✔✔As CFO, I report to Grace Avon, our CEO. I work closely with
company directors to develop corporate goals and strategies. I coordinate, monitor, and
direct Forthright's financial activities.
That covers a lot of territory. In the financial world, information quality and accuracy
are critically important—I work closely with IT to make sure we get that right. That
information has to be communicated to company managers and external parties. When
we need to raise funds—that's also my job.
Last, but not least, strong financial controls and measurement tools are absolutely
essential.
Financial Management Operating Units - ✔✔Specific job titles and organizational
structures vary according to a company's unique needs, but all insurers must perform
certain core financial functions, as shown below.
An organization chart. Under Financial Operations are Accounting and Financial
Reporting, Treasury Operations, and Investment Operations. Separate is Internal Audit.
An insurance company's investment committee directs the company's internal audit
and control function.
a. True
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, b. False - ✔✔A company's internal audit and control function is directed by the
audit/risk committee. The investment committee sets the company's investment policy
and oversees investment operations.
Let's look at how Forthright Financial organizes its financial operations, starting with its
accounting and financial reporting function.
accounting - ✔✔A system or set of rules and methods for collecting, recording,
analyzing, summarizing, and reporting financial information.
financial reporting - ✔✔The process of presenting financial data about a company's
financial position, operating performance, and flow of funds.
The controller - ✔✔responsible for the timely and accurate collection and reporting of
all of Forthright's financial data
The accounting function:
Records, tracks, and reports on financial transactions
Coordinates the budget process and oversees expense analysis
Prepares financial statements and reports for external users
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