IC85 REINSURANCE MANAGEMENT EXAM - 13
| Q1.Which of the following are inspection checkpoints? (i) Coverage checks. (ii) Underwriting checks. (iii) Accounting checks. |
| a) Only (i) above. |
| b) Only (ii) above. |
| c) Both (i) and (ii) above. |
| d) All of the above. |
| Q2._____refers to the professional management of investment such as stock and bounds along with real estate sets realistic goals to increase the insurer's/ reinsurer's wealth and measures the performance. |
| a) Risk Retention Financing |
| b) Self-insurance |
| c) Captive |
| d) Asst management |
| Q3.The Contract of Reinsurance (Choose the incorrect one) |
| a) Is normally the same and identical Contract from the original insurance. |
| b) Does not take on the form of an insurance Contract. |
| c) Need not cover the Reinsured&rsquo's entire obligation under the original insurance contract. |
| d) Can provide a Cover wider than originally insured. |
| Q4.Which is the one whereby the reinsurer receives a predetermined proportion or share of the premium and pays the same proportion or share of loss? |
| a) Facultative Reinsurance |
| b) Treaty Reinsurance |
| c) Proportional Treaty Reinsurance |
| d) Non-Proportional Treaty Reinsurance |
| Q5.Which of the following is correct with respect to facultative reinsurance? |
| a) Ceding insurer does not have the option to cede in facultative reinsurance |
| b) ceding reinsurer has the option to cede in a facultative reinsurance |
| c) reinsurer does not have the option to accept facultative reinsurance |
| d) Reinsurer does not have the option to decline the risk of the insurance company. |
| Q6.Under excess of loss if the cover is for 20 crores in excess of 10 crores then the cover limit is |
| a) 10 crores |
| b) 20 crores |
| c) 30 crores |
| d) None of the above |
| Q7.In countries where minimum solvency margins based on net premiums are applied, reinsurance can reduce the net premiums. What does this statement imply? |
| a) An insurer can accept an increasing volume of business without requiring a corresponding increase in capital. |
| b) An insurer cannot accept an increasing volume of business before requiring a corresponding increase in capital. |
| c) An insurer can accept an increasing volume of business after requiring a corresponding increase in capital. |
| d) An insurer cannot accept an increasing volume of business after requiring a corresponding increase in capital. |
| Q8.Which of the following is correct with respect to per risk retention? |
| a) Per Risk-retention can be managed through controlled and informed decisions. |
| b) The per Risk retention is managed only through reasonable estimation of financial consequences. |
| c) The per Risk-retention relates to the number of individual risk that could be hit by multiple events. |
| d) The Per risk retention is managed by allowing a catastrophe reserve for funds to accumulate and be available over the long term. |
| Q9.The retention limit of the direct insurance is based upon |
| a) Capital |
| b) Risk profile of the portfolio |
| c) Regulatory considerations |
| d) All the above |
| Q10.ABC Company is seeing insurance for its tanker, an ocean-going vessel. ABC Company will have to seek insurance under____ |
| a) Property insurance |
| b) Marine hull insurance |
| c) Marine cargo insurance |
| d) Life insurance |