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Examination Guide

P92 – Insurance business and finance
Diploma in Insurance

April 2011 Examination Guide

SPECIAL NOTICE
Candidates entered for the October 2011 examination should study this Examination Guide carefully in order to prepare themselves for the examination. Practice in answering the questions is highly desirable and should be considered a critical part of a properly planned programme of examination preparation.

P92 April 2011 EG

London EC2V 7HY Telephone: Fax: Email: 020 8989 8464 020 8530 3052 customer.co.serv@cii.uk © 2011 The Chartered Insurance Institute P92 April 2011 EG 2 .Examination Guide P92 – Insurance business and finance Contents Important guidance for candidates Examiner comments Question paper Test Specification Model answers 3 6 8 13 14 Published July 2011 The Chartered Insurance Institute 20 Aldermanbury.

The examiners’ comments on candidates’ actual performance in each question should be noted carefully. It is quite unrealistic to expect that the study of a single coursebook will be sufficient to meet all your requirements.co. Make full use of the Examination Guide The best way to understand what the examiners require is to study the CII Examination Guides. CII members can download free copies of past Examination Guides online at www. attempting it under examination conditions as far as possible and then compare your answers to the model ones.cii.cii.uk or from Customer Service.uk or from Customer Service. While books specifically produced to support your studies will provide coverage of all the syllabus areas.cii. Understand the nature of assessment This Examination Guide contains a full examination paper and model answers. You can then use this understanding to help you demonstrate to the examiners that you meet the required levels of knowledge and skill to merit a pass in this unit. For the sake of clarity and brevity not all of these alternative answers are shown. You will be tested on the syllabus alone. which is essential reading for all candidates. you should note that there are alternative answers to some question parts which would also gain high marks. This information can be found on the question paper included within this Examination Guide. During your preparation for the examination it should be your aim not only to ensure that you are technically able to answer the questions but also that you can do justice to your abilities under examination conditions. Study the syllabus carefully It is crucial that you study the relevant syllabus carefully.Examination Guide IMPORTANT GUIDANCE FOR CANDIDATES Introduction The purpose of this Examination Guide is to help you understand how examiners seek to assess the knowledge and skill of candidates. However. you should be prepared to read around the subject. The model answers show the types of responses the examiners are looking for and which would achieve maximum marks. Know the structure of the examination Familiarise yourself with the structure of the examination paper and the time allowed to complete it. You can purchase copies of Examination Guides online at www.uk. This is important.co. so it is vital that you are familiar with it. The reading list which can be found with the syllabus provides valuable suggestions.co. Before the examination Read the current Diploma in Insurance Information for Candidates Details of administrative arrangements and the regulations which form the basis of your examination entry are to be found in the current Diploma in Insurance Information for Candidates brochure.uk/knowledge. particularly if you feel that further information is required to fully understand a topic or an alternative viewpoint is sought.cii. All the questions in the examination are based directly on the syllabus. which is available online at www. P92 April 2011 EG 3 . Read widely It is vital that your knowledge is widened beyond the scope of one book. It is available online at www.co. You can use this guide as a ‘mock’ examination paper.

such as a letter or a report. if you have time. Answering different question parts Always read all parts of a question before starting to answer it. You may use a financial or scientific calculator. if a question has 12 marks allocated. If a question has just two marks allocated. The majority of the marks will be allocated for demonstrating the correct method of calculation. Do not spend excessive time on any one question. a couple of lines will not be an adequate answer. because they will be slowed down so much by doing so. you may find that after answering part (a). it is better to leave any questions which are felt to be very challenging until the more familiar questions have been attempted. The model answers provided in this Examination Guide are quite focused and precise. it must be a silent battery or solar-powered non-programmable calculator. you should use ‘bullet points’ or short paragraphs. so a long answer is a waste of time. Order of tackling questions Tackle the questions in whatever order feels most comfortable. candidates will not lose marks if it is ‘untidy’. Always remember that if the paper is not completed. Take great care to answer the precise question set. Conversely. the number of marks allocated is the best indication of how much time you should spend on each question. there are likely to be only one or two points for which the examiner is looking. The use of electronic equipment capable of being programmed to hold alphabetical or numerical data and/or formulae is prohibited. if it does not provide a satisfactory answer to the precise question as set. provided it meets these requirements.e.Examination Guide In the examination Assuming you have prepared adequately. Answer format Unless the question requires you to produce an answer in a particular format. It is important to show all the steps of your calculation in your answer. you will only do justice to yourself in the examination if you follow two crucial common sense rules: 1. go on to the next question and only return to the incomplete question after you have completed the rest of the paper. A proficient mathematician is someone who follows the correct method. alternative answers will only be acceptable if they still answer the question. but remember not to spend excessive time on the questions you are most confident about. However brilliantly a candidate writes on a particular topic. leave some space. carries out the appropriate steps. Generally. P92 April 2011 EG 4 . Many candidates leave the examination room confident that they have written a ‘good’ paper. the candidate will not achieve the marks allocated. your chances of passing will be reduced considerably. The maximum marks allocated to each question and its constituent parts are given on the paper. otherwise. the answer you have given is really more appropriate to part (b) and it would be necessary to duplicate much of what has already been written. Handwriting Provided handwriting is legible. We strongly recommended that candidates do not write in block capitals. Spend your time in accordance with the allocation of marks as indicated on the paper. i. if the time allocation for that question has been used up. The model answers indicate what is acceptable for the different types of question. Calculators If you bring a calculator into the examination room. The examination is testing your ability to carry out all the appropriate steps in calculating a value. Often. the explanation for this lies in a failure to think carefully about what the examiner requires before putting pen to paper. The examiners will normally only give credit for an answer if it is contained within its correct question part. since this allows you to communicate your thoughts in the most effective way in the least time. 2. only to be mystified when they receive a disappointing result.

At the meeting a pass mark is set which should ensure that the standard of knowledge and skills required to pass the paper is comparable with that of previous papers. a moderation meeting is held. The marking of each Examiner is closely monitored by the Senior Examiner throughout the marking period and all marked answer books are carefully checked. the model answers in examination guides are based on those marking schemes. P92 April 2011 EG 5 . at which all available statistical information is considered. This process means all answers books are marked to the same standard.Examination Guide After the examination All examiners who mark Diploma in Insurance answer books are either active practitioners in the insurance industry or are experts on the subject. All candidates at or above the agreed mark will pass: the CII does not operate a quota system whereby only a fixed percentage of candidates can pass a paper. They have been specially trained to mark papers using a detailed marking scheme. together with the views of the Senior Examiner and other assessment experts. After all the answer books have been marked.

and were able to provide a good example of how this works. with good awareness of the acceptable risks. Good candidates understood that the profitability ratio is calculated through either the return on equity or combined ratio. For example the debtors ratio demonstrates how often the debt is turned over in a year. indicating that a high solvency ratio would indicate the company has debt problems. was less well answered. Those candidates that achieved higher marks showed a clear understanding of the full connections between the four perspectives and how they would lead to an increase in shareholder value.Examination Guide EXAMINER COMMENTS Question 1 This question was generally well answered by candidates. Many candidates understood how the activity linked into other areas of marketing activity. had mixed results. Question 10 The majority of candidates demonstrated a good understanding of the data protection in part (a). and therefore gives an indication of how long it takes for debts to be collected. Part (b) however. with a good overall understanding of the different types of budget and the differences between fixed and flexible budgets. P92 April 2011 EG 6 . the better candidates demonstrated a good knowledge of how managers promote the interest of employees and affect the culture of the organisation to the extent that they all demonstrate the same ethics. many candidates demonstrated the rules provided for the protection of individuals. A number of candidates confused this with the product life cycle model. Question 5 This question had mixed results in both parts. The better candidates demonstrated knowledge of how the probability of loss is considered. The better candidates understood the meaning of each ratio and interpreted the results from the calculations correctly. Question 7 This question was not answered well overall. however. but did not comment on the consequences of not adhering to these. Many candidates demonstrated an understanding of what business ethics were in part (a). many candidates understood what each ratio was. Question 8 The results of this question were mixed. Part (b). Question 6 The majority of candidates had a good understanding of this concept. such that the individuals can be held liable and fined or prosecuted. In part (b) the majority of candidates got this the wrong way round. with clear understanding of areas covered by a public relations area of a marketing team. Many candidates were aware of regulatory training that needed to be completed but did not pick-up on the legal training that is also a key part of this. with the main areas covered. they turned the ratio upside down and therefore got an incorrect answer. rather than focussing on the areas for consideration. Question 4 This question was generally well answered by the majority of candidates. Question 9 The majority of candidates identified the correct model that this question examines. Question 3 This question was not well answered by candidates. Many candidates confused the answer by going into full discussion on the types of risk acceptable to a company. Question 2 The majority of candidates had a fair understanding of this area. as opposed to the correct answer which would be that this indicates a strong financial position. with many confusing the different ratios.

with good identification of the three main components – the balance sheet. the better candidates understood the reason for Solvency II compared to Solvency I and how this linked to risk management systems. Question 12 Candidates demonstrated a good understanding of this question. Question 17 This question was not well answered by candidates. Question 14 This question was generally well answered by candidates. Question 20 This question was well answered by the majority of candidates. Question 19 This question had mixed results. candidates showed a better understanding of parts (b) and (c) with the better candidates able to answer part (a) as well. Question 15 The majority of candidates answered this question well. The majority of candidates were able to demonstrate that this gives an indication of the value of the company. showing an understanding of all the areas of registered companies obligations. A good answer would have demonstrated an understand of the key areas for the finance director and included an understanding of the part they play in assessing risk and levels of capital required for the company. with a good understanding of the disadvantages of outsourcing. with a good understanding of the main components of the Working Time Regulations 1998 including the maximum numbers of hours a week. P92 April 2011 EG 7 . Question 16 This question was generally well answered by candidates. and the individual’s ability to opt out of this. the income statement and cash flow statements. Those showing a better understanding fully understood the link between existing key players and the need to identify the skills required for the future. Part (b) had better answers than part (a) with the majority of candidates understanding in part (a) that professionalism of accountants and actuaries was essential. with the better candidates demonstrating a good understanding of the reasons for minutes in meetings and that they include a demonstration not only of the decisions made but how these decisions were made. Question 18 Many candidates answered this question well. Question 13 This question was not well answered. but they did not comment on the accounting equation being the basis of double entry book keeping.Examination Guide Question 11 Part (a) of this question was well answered by all candidates.

. P92 April 2011 2 EG 8 . but you mus st NOT write e your name. swer book and this ques stion paper must m both be e handed in personally by you to th he invigilator r The ans before you y leave th he examinati ion room. . PIN or any other o identific cation anywh here on this question q pap per. Read the e the informa ation request ted on the an nswer book and a form B. Provide re allowed to write on the e inside page es of this que estion paper. t instructi ions on pag ge 3 carefully y before ans swering any y questions.Examination Guide e THE CHAR RTERED IN NSURA ANCE E INST TITUT TE P92 2 Dipl loma a in Insur ranc ce Unit P92 P – In nsuranc ce bus siness and a fin nance April 2011 exam mination Instructio ons • • • • • • lowed for this s paper. Failure F to co omply with this regulation will res sult in your r paper not n being marked and you y may be prevented from f enterin ng this exam mination in the future. You ar candidate number. Three hours are all Do not t begin writi ing until the e invigilator instructs yo ou to.

You may find it helpful in some places to make rough notes in the answer booklet. provided it meets these requirements. it must be a silent battery or solar-powered non-programmable calculator. leave six lines blank after each part. If a question has more than one part. The number of marks allocated to each question part is given next to the question and you should spend your time in accordance with that allocation. You may use a financial or scientific calculator. you should cross through these notes before you hand in the booklet.Examination Guide Unit P92 – Insurance business and finance Instructions to candidates Read the instructions below before answering any questions • • Three hours are allowed for this paper. It is important to show each step in any calculation. which contains 20 compulsory questions and carries a total of 200 marks. Answer each question on a new page. If you bring a calculator into the examination room. even if you have used a calculator. Read carefully all questions and information provided before starting to answer. If you do this. • • • • • P92 April 2011 EG 9 . The use of electronic equipment capable of being programmed to hold alphabetic or numerical data and/or formulae is prohibited. Your answer will be marked strictly in accordance with the question set.

List two advantages to budgeting. 1. (10) P92 April 2011 EG 10 . Note form is acceptable where this conveys all the necessary information. (a) (b) Define the term ‘budget’. 4. Identify five tasks that a public relations team within a marketing department will generally undertake. (3) (11) 6. (a) (b) Define the term business ethics. (a) State the formulae for the following three ratios used for insurance company analysis: (i) (ii) (iii) Solvency ratio. Liquidity ratio. (2) (3) (2) (4) (c) Explain briefly the difference between fixed and flexible budgets. (2) (2) (4) (2) (b) Explain briefly what a high solvency ratio figure would indicate. (8) 2. Profitability ratio. (6) 3.Examination Guide Answer ALL questions. 5. (i) (ii) List three methods of budgets in addition to fixed and flexible budgets. Explain how business ethics play a central part in management. Describe briefly four key areas that training programmes need to cover. List and explain briefly three considerations that should be included in an insurance company’s risk appetite statement.

State four other operating bodies that work with the FRC. (6) (4) Questions continue over the page. (10) 10. (a) (b) List the six strategic aims of the Financial Reporting Council (FRC). debtors and creditors ratios. (a) (b) State the four perspectives of the balanced scorecard. Using the following data. State the relevant questions which need to be asked within the perspectives to help shape the vision and strategy of the company.Examination Guide 7. (a) (b) Outline why the UK’s data protection legislation was introduced. (6) (4) 12. (9) 13. P92 April 2011 EG 11 . Identify and explain the three main financial statements required in published financial accounts. calculate the stock turnover. Explain the Lifecycle Model used to assess the level of expectation the business can expect from a customer throughout the customer’s relationship. (a) (b) State the accounting equation and define each element. and state what each means to the company. (4) (6) 11. Your answer should include an example and a diagram. Summarise how the four perspectives link together to ensure business objectives are met. £ 360 100 20 120 240 600 (12) Total cost of sales Debtors Creditors Average stock Total purchases Total sales 9. (4) (4) (c) (4) 8. Describe briefly three consequences of this legislation. Explain the purpose of the accounting equation.

(10) 19. (10) P92 April 2011 EG 12 . (4) (3) (b) (c) (3) 16. List the documents every registered company is legally obliged to submit to Companies House. Outline five disadvantages of outsourcing. (10) 17. Succession planning begins with a review of an organisation’s business strategy.Examination Guide 14. (a) List the four key requirements for public limited companies. (7) (2) 20. Describe briefly five activities that a finance director would be responsible for in a large organisation. List five other steps an organisation will take during this process. (9) 18. Following the changes to be made within the EU Solvency II Directive. under the Companies Act 2006. (a) (b) Explain the importance of taking minutes at company board meetings. State the three statutory functions of Companies House. (10) 15. State who is ultimately responsible for taking these board minutes. explain the requirements of an actuary in an insurance company. Outline five of the principal provisions of the Working Time Regulations 1998.

Understand the main practices of insurance company accounts 2 .Understand other common functions within insurance organisations 8 .Understand the main accounting principles and practices 5 .Understand other common functions within insurance organisations 2 .Understand the structure of the insurance business 3 .Understand the structure of the insurance business 3 .Understand the main aspects of corporate governance 6 .Understand the financial strength of insurance companies 7 .Understand the management of insurance businesses 3 .Understand the financial strength of insurance companies 1 .Understand the use of financial ratios to assess businesses 1 .Understand the main aspects of corporate governance 5 .Understand other common functions within insurance organisations 8 .Examination Guide TEST SPECIFICATION Question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 April 2011 Examination – P92 Insurance business and finance Syllabus learning outcome(s) examined 4 .Understand the main aspects of corporate governance 4 .Understand the main accounting principles and practices 3 .Understand the main aspects of corporate governance 4 .Understand other common functions within insurance organisations P92 April 2011 EG 13 .Understand the management of insurance businesses 1 .Understand the use of financial ratios to assess businesses 2 .Understand the structure of the insurance business 4 .Understand the management of insurance businesses 7 .

• A list of risks that are not acceptable for the company to bear. Model answer for Question 1 • Induction – essential training for new recruits. • The risk acceptance criteria required for appropriate re-insurance. P92 April 2011 EG 14 . Liquidity ratio = total liabilities/cash + investments.Examination Guide NOTE ON MODEL ANSWERS The model answers given are those which would achieve maximum marks. • Skills development for the job – main skills training to do the current job. what they need to know about the company and basic skills to do the job.g. Profitability ratio = ROE = profit after tax/shareholders equity (capital) x 100 or Combined ratio = claims + expenses + acquisition costs/earned premium net of reinsurance x 100. • Skills development for the person – training required to acquire skills to do the next job for those individuals with career aspirations. (b) The higher the figure would indicate that the company is stronger. For the sake of clarity and brevity not all of these alternative answers are shown. • Legal and regulatory training – training required to ensure all individuals have the relevant levels of competence to do the role in-line with Financial Services Authority requirements and other legal requirements. • The use of co-insurance and how this can enable exposure control. • Probability of loss e. An oblique (/) indicates an equally acceptable alternative answer. Model answer for Question 2 Any three of the following: • A list of the risks acceptable for the company to bear. there are alternative answers to some question parts which would also gain high marks. 1 in 200. • The maximum value/exposure that is deemed acceptable. Model answer for Question 3 (a) (i) (ii) (iii) Solvency ratio = net assets/earned premium net of reinsurance. alternatively this could show that a high level of capital is required to support its turnover and is usually seen as ‘over-capitalised’. However.

motivation. • To support other marketing campaigns. How management promotes the interest of employees and take decisions that affect whole communities. what business processes must we excel at? To achieve our vision. Usually covering a short period of months or normally up to a year. • • • • • How the managers use that revenue can have implications on the wellbeing of the countries in which they operate. Flexible budgets can be altered at any time to reflect unexpected changes. • Handling a specific problem e. • Sponsorship activity. Manager’s actions/board cascade ethics so it permeates to the rest of the business and staff. Any two of the following: Unification of effort. within the business and social environment. (b) Model answer for Question 6 Any five of the following: • Motivating the workforce by fostering pride in its public image. such as advertising. bottom-up budgeting. planning. Managers will have to consider any decisions they make. The management will be judged on the way they handle ethical and environmental issues. Model answer for Question 7 (a) • • • • • • • • Financial perspective. Internal perspective. how should we appear to our customers? (b) (c) Balanced scorecards identify the knowledge and skills (learning and growth) that employees need to build the right efficiencies (internal perspective) to deliver specific value to the market place (customer perspective) and therefore deliver the company’s strategy and increase the shareholder value (financial perspective). • Assist in the launch of a new product. • Supporting brand values. Customer perspective. zero-based budgeting and rolling budgets. financial awareness and basis of comparison. (i) Any three of the following: Top-down budgeting. • To influence particular market segments. the cultural aspects of society and what would be considered morally acceptable. To succeed financially. how should we appear to our shareholders/stakeholders? To satisfy our stakeholders and customers.g. health scare. • Building or maintaining the corporate image.Examination Guide Model answer for Question 4 (a) A financial or quantitative statement prepared in advance of a specified accounting period. (b) (ii) • • (c) Model answer for Question 5 (a) The standards and conduct that a business sets itself in its organisation and outside. Fixed budgets are not changed once set regardless of any chance in market forces etc. projected figures are compared against actual figures at the end of the budgeting period. how will we sustain our ability to change and improve? To achieve our vision. P92 April 2011 EG 15 . Learning and growth. control.

• Individuals can go through the courts if they believe their rights have been breached. Debtors ratio = 600/100 = 6 This means that the debt is turned over six times a year. or get fined. • Individual data can only be transferred to non-EU nations if certain conditions are met. to determine criminal or medical histories. • Requests made on behalf of third parties. Long-term profitability Customer retention (cheaper to retain a customer than get a new customer. (b) P92 April 2011 EG 16 . Creditors ratio = 240/20 = 12 This means the credit turnover is 12 times a year which means our average credit terms with suppliers is 30 days. are forbidden. which could lead to cash being tied-up in stock. retain customer worth x throughout life time. and allows an understanding of the potential financial value of the customer to the organisation. therefore on average debts are paid within 60 days. Model answer for Question 9 This model assesses the whole lifetime relationship of a customer.Examination Guide Model answer for Question 8 Stock turnover = 360/120 = 3 This means the company keeps its stock on average for four months.) Quality of relationship (why go elsewhere?) Customer service (supplier service is key – every time a customer interacts with the company. it is an opportunity to build the relationship further. managers etc can be held liable for offences committed by their organisations or sued. • Set of rules were provided for the protection of customers. It also provides a way for individuals to enforce control on information about them. Any three of the following: • Directors. prevents miss-use/loss of data and retains data subject confidentiality. and requires the building of a successful relationship. For example – supermarket or car insurance – by age 20.) Model answer for Question 10 (a) The UK’s data protection legislation governs protection of personal data of individual’s information. Looks at a customer throughout their lifetime/end-to-end basis.

• Preparation of information for rating agencies. It demonstrates any profit or loss made. • Management of internal finances e.e. Equity – this is the amount of cash available either through investment cash or profit. listing all the assets and liabilities. • Ensure provision of claims is sufficient. It forms the basis of the accounting entries that make-up the profit and loss and balance sheet. Model answer for Question 13 (a) Corporate governance. auditing. planning and forecasting etc. Liability – is any amount owed by the organisation. • Determine extent of risk by completing stress and scenario testing. Accounting Practice Board.g. Any four of the following: Accounting Standards Board. • Proposals to board on equity to hold in addition to equity capital. • Preparation and recommendations on the amount of dividends to pay to shareholders. • Balance sheet – statement of financial position at a specific point in time/it shows what the company owns and what it owes. (b) It is a way of looking at financial transactions and explaining how income and expenditure relate to the value of the company. actuarial practice. Board for Actuarial Standards and Professional Oversight Board.Examination Guide Model answer for Question 11 (a) Equity = Assets – Liabilities. • Cash flow statements – shows the sources and uses of cash and is an indication of company liquidity. P92 April 2011 EG 17 . • Management of investment portfolio. • Preparation of statutory accounts. Model answer for Question 12 • Income statement (also known as profit and loss statement) – shows the results of the company as a consequence of the income generated and expenditure occurred during the accounting period. (b) Model answer for Question 14 Any five of the following: • Complete and assess economic capital model to determine appropriate level of capital for the company. budget process. Financial Reporting Review Panel. any physical property or right that has a monetary value that is owned by the organisation. Assets – (tangible or intangible) i. professionalism of accountants and actuaries and Financial Reporting Council effectiveness. corporate reporting. • Preparation of financial information required by the Financial Services Authority. It sets the principle of ‘double entry’ and ensures that the books balance.

• Fear of redundancy and consequent lowering of morale. • Identify the extent to which these jobs may change or new ones created. as external parties would not understand the importance of this information. • Even if damages can be awarded for poor service. All registered companies are obliged to provide Companies House with an up-to-date annual return and in most cases. • Prepare a list of all the skills of the current key people. but will need sufficient knowledge of financial mathematics.Examination Guide Model answer for Question 15 (a) Company formation. annual accounts and a director’s report/statement. The model should be used to assess the company’s technical provisions. business will lose out as customers will not understand why you need to outsource and damage to reputation is difficult to reverse. • Risk that confidential information will be lost or leaked to outsiders. company meetings and responsibilities of a company’s directors and officers. They may not need formal actuarial qualifications. they cannot control with a cheaper internal option. • Identify the performance factors critical to success in these jobs. • Businesses can become too dependent on the outsourced arrangement and then when costs increase. • Establish the current key people. in particular this must have a feedback loop to ensure continual improvement of the model. • Company is still liable for data and cannot negate regulatory responsibility. To incorporate and dissolve companies. • Establish a timetable for when you would expect these key people to leave the organisation. • If outsourcer has financial problems. • Establish a means of identifying current skills of potential successors to your key people. statutory reporting. Model answer for Question 18 Any five of the following: • Certain control and direction will be lost. nothing is prescribed for non-life companies. The directive requires all insurance firms to have an actuarial function. P92 April 2011 EG 18 . business is forced into situation of finding an alternative outsourcer. • Recruit as necessary. The new actuarial function must contribute to company’s effective implementation of risk management systems. • Train current employees. (b) (c) Model answer for Question 16 Any five of the following: • Identify the key jobs necessary to achieve strategic goals. to examine and hold document under the Companies Act and to make this information available to the public. • Full understanding of customer behaviour and satisfaction can be lost if communication between outsourcing company and the business is poor. Model answer for Question 17 Currently under the Financial Service Authority this applies to life companies only.

that minutes must be prepared and kept for ten years. • A worker is entitled to a rest period of 11 consecutive hours between working days. They record how the decision came about. the task can be allocated to anyone who attends the meeting. However. • Paid annual leave. (b) Model answer for Question 20 Any five of the following: • A limit of the average weekly working time to 48 hours. Their permanence in writing reduces the possibility of dispute. They are normally the responsibility of the company secretary or a secretarial assistant. • Minimum daily and weekly rest periods. in their absence.Examination Guide Model answer for Question 19 (a) There is a legal requirement. • Rest breaks at work if working longer than six hours. what final decision was reached and who is responsible for any action. • A requirement to offer health assessments to night workers. • A worker is entitled to a rest period of not less than 24 hours in a seven day period. They should be for any board meetings where significant business decisions are made. although individuals can choose to work longer. defined in the Companies Act. • A limit on night workers average normal daily working time to eight hours. P92 April 2011 EG 19 . • A higher level of rights for adolescent workers.