LOMA 291 Module 4 2024/2025 Exam
Questions and Verified Answers |
Already Graded A+
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 - 🧠ANSWER ✔✔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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,The financial management function - 🧠ANSWER ✔✔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
Role of the Board of Directors - 🧠ANSWER ✔✔- 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 - 🧠ANSWER ✔✔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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔Specific job titles
and organizational structures vary according to a company's unique needs,
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔A system or set of rules and methods for
collecting, recording, analyzing, summarizing, and reporting financial
information.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Verified Answers |
Already Graded A+
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 - 🧠ANSWER ✔✔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
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
1
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,The financial management function - 🧠ANSWER ✔✔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
Role of the Board of Directors - 🧠ANSWER ✔✔- 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 - 🧠ANSWER ✔✔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.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
2
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔Specific job titles
and organizational structures vary according to a company's unique needs,
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
3
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, 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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔A system or set of rules and methods for
collecting, recording, analyzing, summarizing, and reporting financial
information.
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
4
PRIVACY STATEMENT. ALL RIGHTS RESERVED
