1
A claim for a new windscreen is an example of an event that is
A. high frequency and high severity.
B. high frequency and low severity.
C. low frequency and high severity.
D. low frequency and low severity.
The main elements of risk are
A. certainty and predictability.
B. certainty and unpredictability.
C. uncertainty and predictability.
D. uncertainty and unpredictability.
The key components of risk management are
A. analysis, control and insurable interest.
B. identification, analysis and control.
C. identification, analysis and frequency.
D. identification, control and predictability.
Which type of risk arises from a cause outside the control of any one individual and affects a
large number of people?
A. A fundamental risk.
B. A particular risk.
C. A pure risk.
D. A speculative risk.
5
In relation to general insurance, the type of risk that CANNOT be insured is a risk where
A. no financial measurement of the potential loss can be made.
B. the potential for a large number of homogeneous exposures is absent.
C. the severity of the potential loss is difficult to quantify.
D. there is a physical hazard which increases the likelihood of a loss occurring.
Key components in assessing the level of risk are
A. certainty and predictability.
B. frequency and severity.
C. insurable interest and indemnity.
D. uncertainty and predictability.
In relation to insurance, a poor hazard is usually
A. a risk that can only be covered under special terms.
B. something which an underwriter must remove before a proposal can be accepted.
C. something which increases the risk of a loss arising under a policy.
D. something which is listed within a policy as an event for which cover is provided.
A tsunami is an example of an event that is
A. high frequency and high severity.
B. high frequency and low severity.
C. low frequency and high severity.
D. low frequency and low severity.
9
Following a review, a large company has decided to restrict its purchase of non-compulsory
insurance to amounts in excess of a certain level. This decision represents an increase in
the company’s
A. moral hazard.
B. risk retention.
C. risk transfer.
D. uninsurable risks.
10
External elements that can threaten the assets or the earning capacity of a company are
primarily dealt with by which department?
11
The primary function of insurance is to
A. act as a risk transfer mechanism.
B. eliminate all risk.
C. enable the policyholder to make a profit.
D. prevent claims from occurring.
12
The main reason a window cleaner requests a quote for public liability insurance is to
provide him with
A. a fund to pay any claims.
B. insurance that is required for his trade.
C. more trade as he can show he has insurable interest. D. peace of mind.
13
A company manufactures ink cartridges, but due to a manufacturing fault the cartridges leak,
causing damage to external property. What type of policy would cover the manufacturer
against a claim?
A. A business interruption policy. B. A material damage policy.
C. A product liability policy.
D. A public liability policy.
14
Which type of insurance policy provides cover for a lump-sum payment in the event of
accidental death or bodily injury?
A. An employers’ liability insurance policy.
B. A fidelity guarantee insurance policy.
C. A personal accident and sickness insurance policy.
D. A private medical insurance policy.
15
A person who is risk averse will generally transfer risk away through the use of
A. insurance.
B. risk assessment.
C. risk surveys.
D. savings and investment.
16
A risk is co-insured between two insurers. If one insurer becomes insolvent and cannot pay
a valid claim, what is the responsibility of the other insurer?
A. It has no responsibility as the contract is void.
B. It is only responsible for its signed percentage.
C. If it is a compulsory insurance it must settle the claim in full.
D. It must always settle the claim in full.
17
An individual purchases travel insurance for when he goes on holiday without realising that
his household policy also covers some similar elements. This is known as
A. co-insurance.
B. dual insurance.
C. reinsurance.
D. self-insurance.
18
The main benefit to an individual when insuring her house is that
A. it reduces the chance of damage to the property.
B. maintenance costs are covered.
C. mortgage payments are lower.
D. the risk of a loss is transferred.
19
The main financial advantage for an insurer that operates on a direct basis is that it
A. can charge higher premiums.
B. does not have to pay commission charges.
C. incurs smaller advertising costs.
D. receives fewer claims.
20
Which individuals provide financial backing for Lloyd’s syndicates?
A. Managing agents.
B. Members’ agents.
C. Names.
D. Underwriters.
21
The third party which sometimes collects premiums from the insured on behalf of the insurer
is the
A. intermediary.
B. reinsurer.
C. risk manager.
D. underwriter.
22
What type of business does a reinsurer usually accept?
A. Business from individuals who have already insured the risk with an insurer.
B. Business from non-insurance companies which have large insurance needs.
C. Business originally underwritten by an insurer.
D. Business which an insurer has refused to underwrite.
23
An electrical fault has caused insured fire damage in excess of £10,000. Which expert would
the insured normally appoint to negotiate with the insurer on his behalf?
A. Electrical engineer.
B. Forensic scientist.
C. Loss adjuster.
D. Loss assessor.
24
Within Lloyd’s, which body is specifically responsible for setting guidelines for all syndicates
to safeguard standards of underwriting and risk management?
A. Council of Lloyd’s.
B. Financial Conduct Authority.
C. Lloyd’s Franchise Board.
D. Prudential Regulation Authority.
25
A coverholder at Lloyd’s is a
A. broker authorised by the Corporation of Lloyd’s to do business at Lloyd’s.
B. company authorised by a managing agent to issue contracts of insurance.
C. policyholder.
D. service company.
26
The London Market is predominantly associated with the placing of what type of risks?
A. Aviation liability insurance risks only.
B. Complex international insurance and reinsurance programmes.
C. Marine liability insurance risks only.
D. Motor fleet insurance risks up to a premium of £500,000.
27
Which insurers make up the London Market?
A. Reinsurers and Lloyd’s syndicates only.
B. Lloyd’s syndicates and captive insurers only.
C. Insurers, reinsurers, Lloyd’s syndicates and protection and indemnity club members.
D. Insurers, reinsurers, Lloyd’s syndicates and captive insurers.
28
What type of insurer is owned by a non-insurance parent company and is established with
the express purpose of providing insurance cover for the parent company’s own risks?
A. A captive insurer.
B. A Lloyd’s syndicate.
C. A mutual insurer.
D. A proprietary insurer.
29
An insurer owned entirely by its policyholders is a
A. captive insurer.
B. co-insurer.
C. mutual insurer.
D. tied agent.
30
An entity that enables potential policyholders to complete a single online proposal and obtain
quotes from several different insurers NOT associated with the entity is known as
A. a data controller.
B. an insurance aggregator.
C. a mutual insurer.
D. a tied agent.
31
Which organisation provides information and technical services to underwriting businesses
in the Lloyd’s market?
A. Lloyd’s Market Association.
B. London Market Regional Committee.
C. London and International Insurance Brokers’ Association.
D. British Insurance Brokers’ Association.
32
What element of an insurance contract is likely to be affected by purchasing insurance direct
from a UK insurer?
A. The amount of Insurance Premium Tax payable.
B. The complaints process.
C. The premium payable.
D. The protection should the insurer fail.
33
What is meant by consideration in the context of a valid contract between two parties?
A. Each party’s duty to act fairly towards the other.
B. Each party’s duty to act with utmost good faith.
C. Each party’s legal capacity to enter into the contract.
D. Each party’s side of the bargain which supports the contract.
34
Corrine offers to supply filing cabinets to Debra, who accepts the offer. What further action is
required in order that a legally enforceable contract exists between them?
A. Another person needs to witness the agreement.
B. Debra needs to agree to pay Corrine for the filing cabinets.
C. The filing cabinets need to be delivered to Debra.
D. The terms of the agreement need to be written down.
35
Who may terminate a private medical insurance contract?
A. The insured only.
B. The insured’s general practitioner (GP) or medical consultant.
C. The insurer only.
D. Both the insured and insurer.
36
A person seemingly acts on his own behalf and makes a binding contract. Later on it
becomes apparent he is acting on behalf of another. This is known as
A. actual authority.
B. apparent authority.
C. undisclosed agent.
D. undisclosed principal.
37
Under contract law, if a person to whom an offer has been made tells the person making the
offer that she is willing to accept it if some changes are made, this is known as
A. a conditional acceptance.
B. an implied acceptance.
C. an invitation to treat.
D. a unilateral contract.
38
What, if anything, should be stated in respect of commission in a Terms of Business
Agreement between an insurer and an intermediary?
A. No reference to commission is required.
B. Reference only needs to be made to commission if the rate is more than normal market
levels.
C. The amount of commission does not need to be shown, but the classes of insurance it is
payable on must
be identified.
D. The rate of commission and when it becomes payable.
39
Where a principal agrees to honour the obligations of an unauthorised act conducted by an
agent, this is an agency created by
A. apparent authority.
B. consent.
C. necessity.
D. ratification.
40
Where an agent collects premiums on behalf of a principal, the agent is obliged to
A. issue monthly bank statements to the principal.
B. keep the principal’s money separate from the agent’s money.
C. pay Insurance Premium Tax on all premium receipts.
D. provide written receipts for premiums received.
41
What form of consideration is a principal most likely to provide to an agent under an agency
contract?
A. Access to the insurer’s rating database.
B. Commission on net premium receipts.
C. Delegated authority to grant cover.
D. The insurer’s pre-printed documentation and stationery.
42
Which insurance principle will NOT permit Jack’s car to be insured by his neighbour?
A. Contribution.
B. Indemnity.
C. Insurable interest.
D. Subrogation.
43
Paul has a fire insurance policy fully covering a building. The building is destroyed by an
insured peril two weeks after Paul had sold it to Colin. What will Paul receive, if anything,
from his fire insurer?
A. Nothing.
B. The rebuilding cost, less the sale price.
C. The rebuilding cost only.
D. The sum insured.
44
When purchasing a life insurance policy, Ann must be able to demonstrate insurable interest
at which point in time?
A. At the point of purchase only.
B. At the point of purchase and the claims stage.
C. At the claims stage only.
D. At renewal only.
45
What is the most common way that insurable interest in a car arises?
A. Being a passenger in the car.
B. Being involved in a car accident.
C. Driving the car.
D. Owning the car.
46
To whom does the principle of utmost good faith apply in relation to an insurance contract?
A. The proposer only.
B. The insurer only.
C. Both the insurer and the proposer.
D. Any interested third party.
47
Tony sells televisions and computers from his shop and is arranging insurance with a new
insurer. His shop is of non-standard construction and is protected by a central station alarm.
He has had two burglaries in the last 12 months. Police have warned that the theft of LED
televisions has increased substantially in recent months. Which of these facts does Tony
NOT need to disclose to the new insurer?
A. The construction of the premises.
B. The increased theft of LED televisions.
C. The presence of the central station alarm.
D. The two previous burglaries.
48
In terms of the duty of disclosure, what is the difference between a personal private medical
insurance policy and a motor insurance policy, if any?
A. There is no difference.
B. It only applies at inception for the motor insurance policy.
C. It only applies at inception for the private medical insurance policy.
D. It applies continuously for the private medical insurance policy.
49
Eddie takes out a whole of life policy with insurer X and an annual personal accident and
sickness policy with insurer Y. He is diagnosed 10 months later with a heart condition that
will require surgery in 6 months’ time. Which of his insurers, if either, should he notify of this
health change at the anniversary dates of his policies?
A. Both insurers.
B. Insurer X only.
C. Insurer Y only.
D. Neither insurer.
50
Joe lives in a converted, thatched roof, timber-built barn situated in a rural location. Two
years ago he was convicted and fined for handling stolen goods. He applies to his insurer, a
specialist underwriter of timber and thatch properties for household insurance, but his
proposal is still declined. What is the most likely cause for this declinature?
A. His conviction and fine two years ago.
B. The construction of the property.
C. The remote location of the property.
D. The property is a conversion.
51
Ruth is opening a florist shop within an area previously affected by riots. The shop suffered
no damage, is protected by a sprinkler system and is sited only 50 metres away from a
police station. Which of these facts, if any, must she disclose to the insurer when submitting
a proposal for commercial insurance?
A. None of the facts.
B. The proximity of the police station.
C. The presence of the sprinkler system.
D. The previous riots in the area.
52
When David submitted a proposal for private medical insurance, he forgot to answer one of
the medical questions. The insurer did NOT query the missing information and the policy is
now in force. This is NOT regarded as non-disclosure because
A. David could not be expected to know the answer.
B. David intended to provide the insurer with the information.
C. the insurer did not request a medical report from David’s general practitioner (GP).
D. the insurer has waived its right to the information.
53
An insurer proves an insured deliberately answered a question of fact wrongly on the
proposal form to reduce the premium. What is the insurer legally entitled to do on discovery
of this information?
A. Apply additional terms from inception only.
B. Apply additional terms from the date of discovery only.
C. Avoid the policy ab initio.
D. Avoid the policy from the date of discovery only.
54
Material facts are used by an underwriter to
A. analyse the likely frequency and severity of catastrophic events that might impact on a
class of business.
B. assess the level of risk of an insurance proposal to determine the cover that can be
offered and at what premium.
C. negotiate and settle a claim made by the insured under an insurance policy.
D. provide the statistical analysis required to comply with reporting requirements to the
industry regulator.
55
Tom wishes to insure his joinery business. The premises are heated by an unguarded
wood-burning stove, large stocks of flammable paints and solvents are held and there has
been a history of malicious damage attacks on the premises. The premises are located
within a vulnerable flood area although no flooding has occurred. Which of these facts does
Tom NOT need to disclose to his insurer?
A. Malicious damage attacks.
B. Method of heating.
C. Stock level of flammable liquids.
D. Vulnerable flood area location.
56
Who, if anyone, has a duty of disclosure when a commercial insurance policy is renewed?
A. The duty of disclosure does not apply at renewal.
B. The insurer only.
C. The policyholder only.
D. Both the insurer and the policyholder.
57
When an insurer refers to the proximate cause of a loss, what cause is actually being
referred to?
A. The direct cause.
B. The dominant cause.
C. The indirect cause.
D. The remote cause.
58
Julie falls from her horse and is injured. She is taken to hospital where she dies due to an
infection caught at the hospital. What is the proximate cause of her death?
A. The fall from her horse.
B. Her stay in hospital.
C. The infection.
D. Riding her horse.
59
Matt’s portfolio of insurance policies includes private car, household, legal expenses and
mortgage protection. Which of these can be termed a benefit policy?
A. Household.
B. Legal expenses.
C. Mortgage protection.
D. Private car.
60
The placing of an insured in the same financial position after a loss as he was in immediately
prior to the loss is the definition of which insurance principle?
A. Contribution.
B. Indemnity.
C. Insurable interest.
D. Subrogation.
61
Nigel’s five-year-old car is written off following an accident which was his fault. He submits a
claim for the replacement costs of a brand new car to his insurer. Why will the insurer only
offer him the market value of his car immediately before the accident settlement?
A. His policy did not contain a reinstatement provision.
B. His premium was not based on a new car value.
C. The accident was his fault.
D. This is the extent of his financial interest.
62
Gavin’s machine, which is adequately insured on an indemnity basis, is destroyed by an
insured peril. A new machine costs £1,000 and a similar second-hand machine £700. In both
cases the cost of transport and installation is £100. How much will Gavin receive?
A. £700 B. £800 C. £1,000 D. £1,100
63
An aircraft is insured on an agreed value basis of £20,000,000. At policy inception the
market value is £18,000,000, which then increases to £21,000,000 on the day the aircraft
crashes and is a total loss. However, when the claim is agreed it has fallen to £19,000,000.
How much is the airline entitled to receive for the loss?
A. £18,000,000 B. £19,000,000 C. £20,000,000 D. £21,000,000
64
Simon’s garage buildings are valued at £200,000 and insured for £150,000 under an
insurance policy which is subject to average. If he suffers a £50,000 insured loss, how much
will his insurer pay?
A. £12,500 B. £33,333 C. £37,500 D. £50,000
65
Lillian holds personal accident, whole of life, endowment and purchase protection policies.
Which of these can be described as an indemnity policy?
A. Endowment.
B. Personal accident.
C. Purchase protection.
D. Whole of life.
66
Colin’s cottage is valued at £100,000 and is covered by two fire insurance policies, one with
a sum insured of £50,000 and the other with a sum insured of £100,000. Under the principle
of contribution, what maximum payment will Colin receive from the first policy if a fire causes
damage costing £60,000 to repair?
A. £20,000 B. £25,000 C. £30,000 D. £50,000
67
An insurer pays for the repair of damage to a policyholder’s car caused by a vandal, who is
later identified. What option can the insurer exercise to recover the claim paid?
A. The arbitration clause.
B. The average clause.
C. The contribution condition.
D. Its subrogation rights.
68
An insurer pays £10,000 in settlement of a claim for damage caused by a negligent third
party and in addition allows the insured to retain the salvage, worth £1,000. How much can
the insurer claim from the third party when exercising its subrogation rights?
A. £1,000 B. £9,000 C. £10,000 D. £11,000
69
A private medical insurance policy includes a clause that allows the insurer to recover
payment from a third party for private medical treatment expenses that arise as a result of
accidental injury caused by the third party. Under which insurance principle is this clause
allowing the insurer to assume the rights of the insured?
A. Contribution. B. Reinstatement. C. Subrogation. D. Tort.
70
Why does the regulator approve individuals to perform controlled functions?
A. To comply with EU solvency requirements.
B. To comply with Insurance Premium Tax legislation.
C. To ensure that they are fit and proper.
D. To ensure that they comply with the Chartered Insurance Institute’s Code of Ethics.
71
The Insurance: Conduct of Business sourcebook (ICOBS), regarding communications with
customers, states that information about an insurance policy in joint names should be sent to
which party?
A. It can only be sent to the party who signed the proposal form.
B. It may be sent to either party.
C. It may be sent to the first-named party only.
D. It must be sent to both parties.
72
Firms are required to retain documents regarding conflict of interest, client orders, record
keeping, personal transactions and safeguarding of clients assets for a minimum of
A. 1 year.
B. 3 years.
C. 5 years.
D. 10 years.
73
Why is it important for insurers to treat their customers fairly?
A. It is a contractual requirement.
B. It is a regulatory requirement.
C. It is a requirement of the Lloyd’s Market Association.
D. It is a requirement of the London and International Insurance Brokers’ Association.
74
The Unfair Terms in Consumer Contracts Regulations 1999 is designed to protect the
A. aggregator. B. broker.
C. insurer.
D. policyholder.
75
An approved person working for a Lloyd’s broker fails to comply with the relevant regulatory
requirements. Against whom can enforcement action be taken?
A. Lloyd’s only.
B. The approved person only.
C. The broker only.
D. The broker and the approved person.
76
If a personal lines insurance policy contains a term which has NOT been individually
negotiated and causes significant detriment to the policyholder, this is likely to be in breach
of the
A. Contracts (Rights of Third Parties) Act 1999.
B. Data Protection Act 1998.
C. Money Laundering Regulations.
D. Unfair Terms in Consumer Contracts Regulations 1999.
77
Why is motor insurance compulsory?
A. To ensure the Government has a minimum level of income from Insurance Premium Tax.
B. To protect innocent victims of road accidents.
C. To protect the insurance industry by securing jobs.
D. To protect the motor repair industry by securing jobs.
78
Which area(s) of business are addressed by the Insurance: Conduct of Business
sourcebook (ICOBS)?
A. Approved persons’ fitness and propriety.
B. Capital adequacy requirements.
C. Sales and administration process.
D. Training and competence.
79
The nature and extent of the regulator’s supervisory relationship with an intermediary
depends on the
A. amount of annual brokerage income of the intermediary.
B. geographical scope of the intermediary’s operations.
C. level of risk the regulator considers the intermediary presents to its statutory objectives.
D. number of awards made against the intermediary by the Financial Ombudsman Service.
80
What legal provision is contained within the Contracts (Rights of Third Parties) Act 1999?
A. It allows a third party to claim directly against an insurer, where the negligent insured has
become bankrupt.
B. It allows an onerous contract term to be set aside where it is considered to be unfair and
to the detriment of a consumer.
C. It allows an insurer, having indemnified a policyholder for loss or damage by riot, to seek
recovery of its costs from the police.
D. It allows for a third party, who is a named beneficiary under an insurance policy, to
enforce the policy against the insurer.
81
The high-level standards applying to insurance product sales in the Insurance: Conduct of
Business sourcebook (ICOBS) concern
A. advertising accuracy, data protection and regulatory compliance.
B. disclosure of information, policy standards and termination of contracts.
C. financial security, professional indemnity insurance and underwriting standards.
D. suitability of advice, product disclosure and claims handling.
82
The regulator insists on enhanced capital requirement to
A. ensure Insurance Premium Tax levels are consistent.
B. meet Association of British Insurers’ requirements.
C. minimise the risk of an insurance company becoming insolvent.
D. protect shareholders of insurance companies.
83
The regulator has powers to supervise insurers
A. by the voluntary consent of insurance market participants.
B. under the Data Protection Act 1998.
C. under the Financial Services Act 2012.
D. under insurance directives from the European community.
84
An approved person is an individual who must
A. describe the essential elements of a valid contract.
B. explain the consequences of non-disclosure or misrepresentation of material facts.
C. identify and distinguish between indemnity and benefit policies.
D. perform one or more controlled functions.
85
Under which Act was the Assets Recovery Agency established?
A. Criminal Justice Act 1993.
B. Data Protection Act 1998.
C. Proceeds of Crimes Act 2002.
D. Serious Crimes Act 2007.
86
Where the regulator’s rules oblige a firm to appoint a Money Laundering Reporting Officer,
the person appointed must
A. be a qualified solicitor or accountant.
B. have a relevant financial services qualification.
C. have served at least five years with the firm.
D. have a suitable level of seniority and resources.
87
The purpose of Insurance Premium Tax is to
A. enhance insurers’ earnings.
B. fund the Financial Conduct Authority.
C. fund the Financial Ombudsman Service.
D. generate revenue for the Government.
88
In order to comply with the Proceeds of Crime Act 2002, a business transacting insurance
must appoint a
A. Data Protection committee.
B. Financial Ombudsman.
C. Compliance officer.
D. Money Laundering Reporting Officer.
89
Insurance Premium Tax is NOT payable on risks that are
A. in transit.
B. located outside the UK.
C. located within the UK.
D. reinsured.
90
How often should insurance companies submit Insurance Premium Tax returns to HM
Revenue & Customs?
A. Monthly. B. Quarterly. C. Half-yearly. D. Annually.
91
What Act gives individuals protection to ensure that information collected about them is
accurate?
A. Contract (Rights of Third Parties) Act 1999.
B. Data Protection Act 1998.
C. Financial Services and Markets Act 2000.
D. Proceeds of Crime Act 2002.
92
In which circumstances, if any, may an insurer levy a charge to investigate a complaint?
A. The insurer can levy a charge at its own discretion.
B. The insurer can only levy a charge where notice to this effect is included within its Terms
of Business Agreement.
C. The insurer can only levy a charge where the complaint has been referred to the Financial
Ombudsman Service.
D. The insurer cannot levy a charge in any circumstances.
93
The main function of the Financial Ombudsman Service is to arbitrate in disputes regarding
claims settlements between
A. large commercial policyholders and brokers.
B. large commercial policyholders and insurers.
C. private policyholders and insurers.
D. private policyholders and brokers.
94
An insurer ceases trading with liabilities far outweighing its assets. Which organisation will
compensate the insurer’s policyholders?
A. The Association of British Insurers.
B. The Chartered Insurance Institute.
C. The Financial Ombudsman Service.
D. The Financial Services Compensation Scheme.
95
What are an insurer’s responsibilities, if any, after a consumer has referred an unresolved
complaint to the Financial Ombudsman Service (FOS) for resolution?
A. It has no further responsibilities.
B. It must continue to negotiate a resolution with the consumer.
C. It must negotiate with the FOS.
D. It must co-operate with the FOS and comply promptly with any award made by it.
96
The Financial Services Compensation Scheme is funded from
A. general taxation.
B. a levy on authorised firms.
C. a percentage levy on investment and pension funds.
D. proceeds of Insurance Premium Tax.
97
Jack is a broker and has acquired a large new commercial client who insists on settling all
transactions in cash. He suspects an element of money laundering may be taking place.
What must Jack do in compliance with the Chartered Insurance Institute’s Code of Ethics?
A. Disclose his concerns to the insurers and let them decide whether to continue trading with
the client.
B. Discontinue trading with the client.
C. Maintain client confidentiality by not reporting his concerns and continue to trade.
D. Report his concerns to the relevant authorities.
98
What feature of a company’s culture would provide the most positive indication of its
adoption of the Chartered Insurance Institute’s Code of Ethics?
A. The attitude and behaviour of staff.
B. Company credit control.
C. Marketing strategy.
D. Underwriting philosophy.
99
What is the essential purpose of the Chartered Insurance Institute’s Code of Ethics?
A. To encourage insurers to exercise restraint in awarding or setting executives’ pay and
bonuses.
B. To influence insurers’ investment strategy towards environmentally responsible and
recurring sustainable
investments.
C. To meet standards which inform decision making, business relationships and general
behaviour.
D. To reduce the prospect of mis-selling insurance products.
100
In order to comply with the Chartered Insurance Institute’s Code of Ethics on financial
prudence, a firm must ensure that
A. all premiums are collected by year end.
B. the members of its finance department do not have any debts.
C. there is more than one financial officer on site.
D. adequate financial resources are maintained.
