1.Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C?

using a modified version of (a) or (b) applicable to reinsurance contracts held

using the general model

using the premium allocation approach

using the modified version of the general model applicable for onerous insurance contracts

2.S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer. S2: Under the general model of PFRS 17, a group of insurance contract is initially measured at the fulfillment cash flows and the contractual service margin.

Only S1 is incorrect

Only S1 is correct

Both statements are incorrect

Both statements are correct

3.ABC obtains life insurance from Entity BB (an insurance company). Entity A cedes 35% of the insurance risk in the insurance contract with ABC to Entity DD, another insurance company. The 35% insurance risk transferred to Entity DD is called the

cession.

retention limit.

session road.

net retention.

4.S1: Insurance service result is recognized in other comprehensive income. S2: Principle of Subrogation is the legal principle that precludes you from obtaining fire insurance on your neighbor's house with you as the beneficiary.

Both statements are incorrect

Only S1 is correct

Only S1 is incorrect

Both statements are correct

5.Which of the following is not one of the groupings of insurance contracts under PFRS 17?

those that are not onerous at initial recognition but can become onerous in subsequent periods

those that, at initial recognition, have no significant possibility of becoming onerous in subsequent periods

those that are onerous at initial recognition

those that pay premiums at initial recognition which are to be measured using the simplified approach