Question bank — IFRS 17 — Insurance Contracts

78 questions in FR/EN/ES, scored by the real scoring engine.

Contracts within the scope of IFRS 172 questions

Marelle SA issues investment contracts with discretionary participation features, but it does not issue insurance contracts; these investment contracts fall within IFRS 17.True / falseL1
Alvéa SA issues insurance contracts. It has also entered into a treaty with a reinsurer that reimburses it for part of the claims of its portfolio. Under the scope of IFRS 17, how should this treaty be analysed from Alvéa's point of view?Single choiceL2

Contracts excluded from the scope2 questions

Optional scope choices1 question

Dépannex SA sells an annual roadside assistance package at the same price to all its customers, whatever their risk profile (case data). When a breakdown occurs, it provides a repair service in kind and pays no cash; the insurance risk arises mainly from the customer's use of the service. What may Dépannex do under the scope of IFRS 17?Single choiceL2

Insurance risk3 questions

Significant insurance risk2 questions

Combining contracts and separating components1 question

Which statements about combining contracts and separating components are correct? More than one answer is possible.Multiple choiceL2

Portfolios of contracts2 questions

Groups by profitability3 questions

Annual cohorts3 questions

The EU cohort exemption1 question

Euronia SA, an insurer established in the European Union, applies to a portfolio of contracts pooled across generations the exemption provided by Regulation (EU) 2021/2036. How is this exemption correctly characterised in relation to the annual cohort requirement?Single choiceL3

The recognition date of a group2 questions

The contract boundary1 question

Lumière SA issues a one-year health insurance contract, renewable each year. Under the clauses of the case, at each renewal date Lumière may reassess the policyholder's risk and set for the following year a price that fully reflects that risk; the policyholder is not obliged to renew. Lumière must decide whether the premiums of the following year enter the measurement of the contract at issue. Write a short note concluding on this, distinguishing rule, case facts and professional judgement.JudgmentL3

Fulfilment cash flows3 questions

Future cash flows to include1 question

Which statements about estimates of future cash flows are correct? More than one answer is possible.Multiple choiceL2

Discounting the cash flows2 questions

The risk adjustment for non-financial risk2 questions

The contractual service margin at inception3 questions

Onerous groups at inception3 questions

Insurance acquisition cash flows1 question

The acquisition cash flows of a group cannot give rise to an asset before the group to which they relate has been recognised.True / falseL2

Liability for remaining coverage and for incurred claims2 questions

The reconciliation of the margin3 questions

Adjustments to the margin1 question

At the closing date, Elvire SA identifies two changes for a group. C1: the administration costs expected for the remaining coverage period are revised upwards by 200 euros. C2: the claims of the year exceed by 80 euros those that were expected for that year (current service). Which treatment complies with the rule?Single choiceL3

Coverage units and the release of the margin3 questions

Onerous groups after inception1 question

How does the loss component of the liability for remaining coverage of an onerous group work after initial recognition?Single choiceL3

Eligibility for the simplified approach3 questions

Measurement under the premium allocation approach2 questions

Acquisition costs in the simplified approach1 question

Tellis SA applies the premium allocation approach to a group whose contracts each have a coverage period of nine months. It has incurred 100 euros of acquisition cash flows. What may it do with these flows?Single choiceL2

Contracts with direct participation features2 questions

The margin in the variable fee approach1 question

A contract of Prisme SA is a contract with direct participation features. At the closing date, the fair value of the underlying items falls by 1,000 euros. The entity's share of those items (variable fee) is 20%, and the fulfilment cash flows that do not vary with the underlying items are nil (case data). Write a short justification explaining why this fall adjusts the contractual service margin rather than going directly to profit or loss, and by what amount.JudgmentL3

The general model for reinsurance held1 question

A reinsurance contract held by a cedant is measured together with the underlying insurance contracts it covers, as a single set of cash flows.True / falseL2

Loss-recovery on reinsurance1 question

A reinsurance contract held, entered into before the underlying contracts were recognised, covers proportionally an onerous underlying group. What does the loss-recovery component introduced by the June 2020 amendments provide for?Single choiceL3

Insurance revenue3 questions

Insurance service expenses1 question

Mosaïque SA reports for the period insurance revenue of …, incurred claims of … and other insurance expenses of … (case data). It also repaid … to policyholders in respect of an investment component. Calculate the insurance service result.CalculationL3

Insurance finance income and expenses1 question

The carrying amount of a group of contracts increases by 550 euros during the period: 150 euros come from the effect of the time value of money on the liability (unwinding) and 400 euros from an excess of incurred claims over expected claims (case data). Which part of the increase is an insurance finance expense?Single choiceL3

Disaggregation between profit or loss and OCI2 questions

Disclosures1 question

Which statements about presentation and disclosure under IFRS 17 are correct? More than one answer is possible.Multiple choiceL2

Modification and derecognition of a contract1 question

The parties to an insurance contract of Tilleul SA change its terms. Had these new terms existed from inception, the contract would have been excluded from the scope of IFRS 17 (case fact). Which treatment applies to the modified contract?Single choiceL3

Full retrospective application1 question

On transition, the entity applies IFRS 17 retrospectively in full for each group of contracts, unless that application is impracticable.True / falseL1

Impracticability and the choice of approach1 question

On transition, Delmas SA finds that full retrospective application is impracticable for its group G1 and practicable for its group G2 (management's assessments). Which transition approach complies with the rule for each of the two groups?Single choiceL3

The modified retrospective approach1 question

What is the objective of the modified retrospective approach on transition?Single choiceL3

The fair value approach1 question

At the transition date, Ondine SA applies the fair value approach to a group. The fair value of the group is … (case data). Future flows are claims of … payable in two years and premiums of … receivable in one year; the discount rate is … and the risk adjustment for non-financial risk is … (case data, management's judgement). Calculate the fulfilment cash flows of the group and the margin at the transition date.CalculationL4

The 2020 amendments1 question

What is to be remembered about the June 2020 amendments to IFRS 17?Single choiceL3

Comparatives and the classification overlay1 question

An entity that applies IFRS 17 and IFRS 9 at the same time may, for financial assets whose comparatives are not restated, present comparative information as if the classification and measurement requirements of IFRS 9 had been applied.True / falseL3

Links with IFRS 91 question

An insurance contract of Solène SA contains an embedded derivative that must be separated and a distinct investment component (case facts). Under which standard is each of these two components accounted for after separation?Single choiceL3

Links with IFRS 151 question

Mistral SA offers, with an insurance contract, an equipment maintenance service that the case describes as a distinct good or service (case assumption). How should this service be treated?Single choiceL3

Links with IAS 371 question

Opaline SA has issued an insurance contract that falls within the scope of IFRS 17. A covered claim has occurred and is not yet settled. How is the obligation to settle that claim measured?Single choiceL2

The IFRS 13 context1 question

In the fair value approach on transition, which standard governs the measurement of the fair value of the group of contracts used as the reference?Single choiceL2