Question 1
Under the UK regulatory architecture, which body is responsible for the prudential supervision of insurers, including setting capital requirements such as the Solvency Capital Requirement?
Correct Answer:
The Prudential Regulation Authority (PRA)
Question 2
An insurer must treat customers fairly and ensure products deliver fair value to identified target markets. Which FCA regime most directly imposes these outcomes-based obligations on UK life insurers?
Correct Answer:
The Consumer Duty
Question 3
Under Solvency II / Solvency UK, technical provisions for business that cannot be reliably replicated by a hedging portfolio are calculated as the sum of which two components?
Correct Answer:
Best estimate liability plus a risk margin
Question 4
Following the Solvency UK reforms, the cost-of-capital rate used in the risk margin calculation for long-term insurance business was changed from 6% to which value?
Correct Answer:
4%
Question 5
The Solvency II Standard Formula Solvency Capital Requirement is calibrated to which confidence level over a one-year horizon?
Correct Answer:
99.5% VaR
Question 1
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About this Exam

Prepare with the IFoA SA2 Practice Questions - IFoA SA2 Life Insurance Specialist Advanced Exam practice quiz. This question bank includes 100 questions covering solvency, insurer, risk, with-profits, and value. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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IFoA SA2 Practice Questions - IFoA SA2 Life Insurance Specialist Advanced Exam

This practice set contains 100 questions from the matching question bank and focuses on solvency, insurer, risk, with-profits, and value. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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