Que. 1 : Q1) If an insurance company is put under ‘Credit Watch’, and is given a ‘positive’ designation, then what would this mean for that insurance company?
1. a) Rating of insurance company can be raised
2. b) Rating of insurance company can be lowered
3. c) Rating of insurance company can be affirmed
4. d) Rating of insurance company can be lowered or affirmed
Que. 2 : Q2) In which of the following countries did the risk retention group originate?
1. a) The US
2. b) The UK
3. c) India
4. d) China
Que. 3 : Q3) What refers to a proportion of all business to be reinsured?
1. a) Quota share
2. b) Surplus reinsurance
3. c) Facultative reinsurance
4. d) Treaty reinsurance
Que. 4 : Q4) Which of the following is incorrect with respect to advantages of reinsurance?
1. a) The net peremiums and losses are stabilised over a shorter period of time
2. b) An insurer cannot accept new and untested risk exposures with reinsurance
3. c) The incidence of loss gets widely distributed
4. d) The problem of accumulation within each line of business and between different lines is controlled
Que. 5 : Q5) The coding of the information header is accomplished by the…
1. a) The actuaries
2. b) The Underwriter
3. c) General management
4. d) The intermediary