IFRS 17 I
Calculate the correct contractual service margin ((asset)/liability):
Estimated PV of future cash inflows (500)
Estimated PV of future cash outflows 340
Risk adjustment for non-financial risk 40
120
An insurer issuing insurance contracts has a December 31 year-end. The insurer decided not to early adopt IFRS 17 and is issuing half-year interim financial statements. From which date should an insurer measure liabilities from insurance contracts in accordance with IFRS 17 for the first time?
January 1, 2022
What are the three measurements introduced under IFRS 17?
General Measurement Model (GMM), Variable Fee Approach (VFA), Premium Allocation Approach (PAA)
Reaching out to a remote colleague and asking for their opinion in a meeting is an example of..
Inclusion.
True or False?
"If I include non-public information relating to Sun Life or Sun Life Clients on my personal social media account, I am violating the code."
True
After reviewing an insurance contract, you identify that the insurance contract has an embedded derivative that needs to be separated. The only remaining component in the host contract is an insurance component. Thus, there is an insurance component and an embedded derivative that needs to be separated.
How should we account for the components?
Account for the insurance component in terms of IFRS 17 and the embedded derivative in terms of IFRS 9.
Which measurement model was prohibited in the reinsurance contract?
Variable Fee Approach (VFA)
Which of the following would not be included in the expected present value of future cash flows reconciliation of opening to closing balance?
a) Change in future services
b) Release of CSM
c) Premiums received
d) Interest accrued
b) Release of CSM
What is it to support members of underrepresented groups (that you are not in) to fight for equal advantage?
Being an ally.
True or False?
Blocked fire exits, standing on a chair to reach a high shelf, overloading electrical sockets, connecting multiple extension cords together, and using damaged electrical cords are ALL safety hazards that could result in workplace injuries or deaths.
True.
Which of the following statements about the eligibility criteria for the scope of the Variable fee approach are true?
a) The assessment of whether the criteria are met is done on an expected basis.
b) The application of the criteria are judgmental, for instance in assessing whether the shares of the returns of the underlying items are substantial or whether a substantial proportion of all cash flows are shared.
c) The criteria are assessed at inception of the contract and not subsequently reassessed.
d) All of the statements above are correct.
d) All of the statements above are correct.
True or False
A group of reinsurance contracts held cannot be onerous, which means that the CSM for a group of reinsurance contracts held can either be in an asset or a liability position.
True
Which of the following items are part of the minimum disclosure requirements of IFRS 17:
I. Sensitivity analysis on a gross and net basis
II. Information about the effect of each regulatory environment
III. Qualitative and quantitative disclosures about the market risk
IV. Claims development tables
a) I
b) I and II
c) I, II, and III
d) All of the above
d) All of the above
A range of people with various racial, ethnic, socioeconomic, and cultural backgrounds and various lifestyles, experiences, and interests; encompasses various backgrounds and perspectives.
The statement above describes which concept?
Diversity.
What are the steps you can take to help create a Healthy Work Environment, both for yourself and your colleague?
(I) Sitting position
(II) Regular Breaks
(III) Medical emergencies
A. I
B. II and III
C. I and II
D. I and II and III
D. I and II and III
Which of the following items are not part of the insurance service result on the statement of profit or loss?
a) Discount unwind
b) Claims and benefits incurred
c) Insurance contract revenue
d) Day one losses (onerous contracts)
a) Discount unwind. It is either disclosed as part of the investment result or OCI, depending on the policy choice.
Is this an insurance contract under IFRS 17?
A Dutch company, which usually trades in Euros, has customers in the UK that pay in GBP. To insure against a less favorable exchange rate (FX rate), they enter into a contract with an insurance company to compensate them for losses as a result of the 10% or more decline in the FX rate.
No, this is a financial risk.
The general measurement model is the default measurement model in IFRS 17. There are eligibility criteria to assist in determining whether the VFA and PAA apply to a group of insurance contracts.
Determine if the following statement regarding the eligibility criteria of these two approaches is True or False:
"When a group of insurance contracts is eligible for PAA, the insurer may elect to apply PAA."
True.
"Work to learn", "Acknowledge your own fallibility" and "Be curious" are the three central tenets of?
Psychological safety.
Thomas has a personal smartphone and a Sun Life issued smartphone. He cannot find his Sun Life smartphone.
Which TWO of the following practices could represent information security concerns for our company?
A) Emailing his manager to advise of the lost smartphone
B) Using his personal smartphone to conduct Sun Life business; via calls, emails, texts
C) Failing to report the lost Sun Life smartphone to the Service Desk
B and C
Which measurement approaches can apply to participating contracts?
a) Premium allocation approach
b) Variable fee approach
c) General measurement model
a, b and c - All of the approaches can apply to participating contracts.
Which of the following contracts is a participating contract, when the performance of the underlying items of that contract is shared between policyholder and insurer? (Select all that apply)
a) Insurance Contract
b) Reinsurance Contract
c) Investment contract with discretionary participation features
a), b) and c)- All of the above contracts are participating contracts.
If a policy should be measured using the general measurement model, should changes in the discount rate be recognized in the statement of profit or loss or other comprehensive income in accordance to IFRS 17?
Depends on accounting policy choices.
Ie. When using GMM, cash flows are discounted at current rate, and IFRS 17 allows an entity to make an accounting policy choice whether changes in the discount rate are recognized in PL or OCI.
1) Modeling it yourself as a leader by asking for feedback, 2) Communicating both "the why" and "the how", 3) Reframing it as a learning opportunity, and 4) Embedding feedback as a routine are the four keys to what?
Four keys to building a feedback culture.
Nia is a new Sun Life contractor who has been provided with a Sun Life laptop, email address and access to SharePoint folders containing information classified as SL Confidential. Nia is accustomed to working on her personal computer and asks you if it’s OK to forward Sun Life emails and files to her personal email account so that she can be more efficient.
What THREE items should you advise Nia?
A) Sun Life contractors have passed detailed background checks so it’s OK for them to send emails and files to their personal email accounts and store them on their personal computers.
B) If it’s necessary to email sensitive files to authorized individuals outside of Sun Life our encryption solutions should be applied.
C) Contractors are also responsible for protecting Sun Life information and technology as part of their contractual obligations under the Code of Conduct and the Security Risk Policy.
D) No. Forwarding Sun Life emails and files to non-Sun Life computers violate
B, C, and D