Chartered Insurance Institute Of Nigeria Past Questions

There is good news right now and in this post, you will know how you will come out with good grades in your examination.

Preparation is paramount before going for any examinations because maximum preparation is required to get success. That is why we helped you gather all the questions from past years that will help you to succeed. This past question covers how the examinations is patterned, important topics that do not miss out, and the simplest ways to answer these questions to suit the marking scheme.

How is Chartered Insurance Institute Past Questions Patterned

The Past Questions are patterned as THEORY questions which is divided into different part. We have made it very easy for you. we bring all the questions for many years and put them together but we indicate the specific years of their occurrence. We provide the correct answers in order to save your time. All you need to do is to devote quality time to study the Past Questions in PDF Format and watch yourself change the narrative by scoring better than you expected.

Why You Need A Copy of The Past Questions

You need this past question for the following under listed reasons;

-provides useful information about the questions to expect to help detect your strength and weakness in each field.

-Getting the Past Questions and taking time to study the content will expose you to the questions that have been asked years back as most of those questions and answers get repeated every year while some will just be rephrased. You will be loosing out if you don’t get a copy for yourself.

-One reason to use past questions is forming an excellent basis for revision in preparation for examinations and prevention of future mistakes  by having a clear focus.

Chartered Insurance Institute Past Questions Sample

In other to know that we are giving out the original CIT Past Questions, we have decided to give you some free samples as proof of what we said earlier
PART I
Answer ALL questions in Part I
Each question is worth six marks
Note form is acceptable where this conveys all the necessary information
1. Explain briefly what insurable interest is and its features. (6)
2. Explain the differences between the treatment of surplus or deficit in the
policyholders’ fund, under the proprietary insurance provision model and under
the mutual insurance provision model. (6)
3. Explain the common prohibitions and restrictions which make the conventional
insurance unacceptable under Shariah. (6)
4. Explain the basic Mudharabah model. (6)
5. Explain how a Takaful operator manages the deficit in the participants’ risk fund. (6)
6. Identify the benefits and the criticism of Takaful windows. (6)
7. Outline three events that took place during the lifetime of the Prophet Muhammad
(PBUH) that support the concept of insurance, risk mitigation and risk sharing. (6)
8. Describe the key operational features of the Wakalah–Mudharabah arrangement
for reTakaful. (6)

Part II
Compulsory question
This question is worth 38 marks
9. A newly appointed accountant in ABC Takaful, a firm which uses the
Wakalah-Mudharabah model in its operation, has prepared the statement of
Policyholders’ Revenues and Expenses for the year 2019, as shown below:
Statement of Policyholder’s Revenue and Expenses
2019 (£ ‘000)
Insurance Revenues
Paid Up Capital 750,000
Wakalah Fees 20,000
Mudarib Share 176
Balance of Retained Surplus at 31 December 2018 3,000
Dividends Payable 50
Total Insurance Revenue 773,226
Insurance Expenses
Earned Contribution 46,026
Reinsurance Commission Income 5,013
Net Paid Claims 25,000
Distribution to Policyholders 1,000
Acquisition Cost 5,300
Total Insurance Expenses 92,339
Net Surplus from Insurance Operations 680,887
Investment Income
Investments 10,000
Less: Gross Investment Income for Policyholders 1,300
Net Investment Income 8,700
Surplus (or deficit) of Revenue over Expenses 689,587
After reviewing the statements prepared, as the firm’s Chief Financial Officer, you notice
gross errors.
(a) Explain to the new accountant the objective of Statement of Policyholders’ Surplus
(deficit) and how it is prepared. (8)
(b) Using the information shown in the Statement of Policyholders’ Revenue and
Expenses, prepare the following statements correctly.
(i) The Statement of Policyholders’ Revenue and Expenses for the year 2019. (20)
(ii) The Statement of Policyholders’ Surplus (deficit) for the year 2019. (10)