IC85 REINSURANCE MANAGEMENT EXAM - 07
| Q1.____ is not a credit rating agency. |
| A.M. Best |
| Moody’s |
| Fitch |
| Ombudsman |
| Q2.___is the amount of the ceding insurers' loss that is eligible for recovery under the terms of an excess of loss treaty. |
| Ground-up loss |
| Ultimate Net Loss |
| Net retained Loss |
| Gross Loss |
| Q3.A reinsurer shall support a ceding insurer on what basis. Find the odd man out. |
| if the ceding insurer is adequately capitalized |
| if the ceding insurer is not adequately capitalized |
| if the ceding insurer is in a financial difficulty |
| if the ceding insurer is a known “rogue” to the market |
| Q4.ABC Ltd. wants to insulate the shareholder's funds from unpredictable losses. Devise a solution. |
| Co-insurance |
| Shared insurance |
| Underwriting contract |
| Reinsurance contract |
| Q5.Analyze the following statements: i. long term investment yields higher interest ii. investors can earn higher returns depending on their ability iii. liquid cash helps insurers to have sufficient liquid assets to pay a claim |
| Only I and II are True and III is False and III IS FALSE |
| Only II and III are True and I is False |
| Only III and I are True and II is False |
| All the above statements are True |
| Q6.Categorize ''Stop Loss'' appropriately. |
| This method does not apply on the basis of per risk or catastrophe |
| This method applies on the basis of per risk or catastrophe |
| Only this method is allowed in India |
| This method is not allowed in India |
| Q7.Complete the phrase which has been designed as follows - ''Unknown accumulations arising out of one event...... ‘ |
| Can get protected with the help of two risk covers |
| Can get protected with the help of retention deposit covers |
| Can get protected with the help of catastrophe covers |
| Can get protected with the help of minimum deposit covers |
| Q8.For increasing the retained premiums in the country in which sector Indian Insurance Companies Association started the formation of Reinsurance pool in the year 1966? |
| Motor |
| Medical |
| Fire and Hull |
| Cargo |
| Q9.How are the basic statistics relating to a treaty collated? |
| The basic statistics relating to a treaty are collated from bank statements as sent and received |
| The basic statistics relating to a treaty are collated from information statements as sent and received |
| The basic statistics relating to a treaty are collated from accounts statements as sent and received |
| The basic statistics relating to a treaty are collated from transfer statements as sent and received |
| Q10.If there is a reciprocal exchange how is all the business exchanged with the insurer or reinsurer summarized? |
| If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing premiums on one side and matching acceptances on the other side |
| If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing claims on one side and matching acceptances on the other side |
| If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing taxes on one side and matching acceptances on the other side |
| If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, cessions on one side and matching acceptances on the other side |