1
LOMA 291 MODULE 4 EXAM / QUESTIONS AND
CORRECT ANSWERS 2025 GRADED A+ LATEST
UPDATE.
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 - (answers)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 - (answers)Provides information to
stakeholders
Ensures that financial obligations are met
Ensures compliance with complex financial regulations
Generates adequate returns for the company's owners and customers
, 2
Role of the Board of Directors - (answers)- 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 - (answers)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.
The role of the CFO - (answers)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.
, 3
Last, but not least, strong financial controls and measurement tools are absolutely
essential.
Financial Management Operating Units - (answers)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
b. False - (answers)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 - (answers)A system or set of rules and methods for collecting,
recording, analyzing, summarizing, and reporting financial information.
, 4
financial reporting - (answers)The process of presenting financial data about a
company's financial position, operating performance, and flow of funds.
The controller - (answers)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
Gathers, records, analyzes, and distributes financial information to company
managers
Of the following stakeholders, select the ones Forthright would consider to be
internal users of its accounting information. Choose all that apply.
a. Regulators
b. Rating agencies
c. Board of directors
d. Policyowners
e. Managers
f. Investors
LOMA 291 MODULE 4 EXAM / QUESTIONS AND
CORRECT ANSWERS 2025 GRADED A+ LATEST
UPDATE.
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 - (answers)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 - (answers)Provides information to
stakeholders
Ensures that financial obligations are met
Ensures compliance with complex financial regulations
Generates adequate returns for the company's owners and customers
, 2
Role of the Board of Directors - (answers)- 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 - (answers)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.
The role of the CFO - (answers)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.
, 3
Last, but not least, strong financial controls and measurement tools are absolutely
essential.
Financial Management Operating Units - (answers)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
b. False - (answers)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 - (answers)A system or set of rules and methods for collecting,
recording, analyzing, summarizing, and reporting financial information.
, 4
financial reporting - (answers)The process of presenting financial data about a
company's financial position, operating performance, and flow of funds.
The controller - (answers)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
Gathers, records, analyzes, and distributes financial information to company
managers
Of the following stakeholders, select the ones Forthright would consider to be
internal users of its accounting information. Choose all that apply.
a. Regulators
b. Rating agencies
c. Board of directors
d. Policyowners
e. Managers
f. Investors
