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Category: IC85 REINSURANCE MANAGEMENT EXAM – 01

IC85 REINSURANCE MANAGEMENT EXAM – 01

Que. 1 : Q1) Which of the following clauses allows the reinsured to affect reinsurances in priority?

   1.  a) Recital Clause.

   2.  b) Net retained lines Clause.

   3.  c) Operative clause.

   4.  d) Aggregate extraction clause.

Que. 2 : Q2) Absence of direct relationship between Re- insurer and insured is an essence of the Re-insurance concept. Which of the following clause is against this concept?

   1.  a) Premium adjustment clause

   2.  b) Claims cooperation clause

   3.  c) Cut through clause

   4.  d) Follow the fortune clause

Que. 3 : Q3) No RI commission is payable to the ceding company under this type of business-

   1.  a) Fire and Accident Proportional Reinsurance

   2.  b) Marine Proportional Reinsurance

   3.  c) Excess of Loss Reinsurance

   4.  d) All the above

Que. 4 : Q4) In reinsurance terminology a cession is the

   1.  a) Amount of insurance a reinsurer cedes to another Re-insurer

   2.  b) Amount of insurance an insurer keeps for its own account

   3.  c) Amount of insurance an insurer transfers to a Re-insurer

   4.  d) Maximum amount of insurance an insurer can write

Que. 5 : Q5) The fixing of the retention will depend on…

   1.  a) Type of excess of loss cover.

   2.  b) Working or per risk coves

   3.  c) Catastrophic covers.

   4.  d) All of the above.