Que. 1 : Q1) Pure premium is the premium that would be sufficient to offset all accident claim cost. Say whether True of False.
1. a) True
2. b) False
Que. 2 : Q2) Under which rate regulatory system, it only requires prior approval if the rate change is substantial, such as 10% to 25%?
1. a) Open competition laws
2. b) Prior approval laws
3. c) Flex rating laws
4. d) File and use laws
Que. 3 : Q3) What are the objectives of premium rating system?
1. a) Stability
2. b) Contingencies
3. c) Only a
4. d) Both a and b
Que. 4 : Q4) Exception based underwriting enables which of the following?
1. a) Manual underwriting of complex cases
2. b) Rating of simple cases
3. c) Client management in the SME area
4. d) Identification of problematic young drivers
Que. 5 : Q5) ____________ make it possible for insurers to improve accuracy and speed of the underwriting process. They can respond to agents within minutes and dramatically reduce the turnaround time for policy issuance.
1. a) Packaged underwriting systems
2. b) Exception-based underwriting
3. c) Web-based technologies
4. d) Technology