Que. 1 : Q1) Which of the following are inspection check points? (i) Coverage checks. (ii) Underwriting checks. (iii) Accounting checks.
1. a) Only (i) above.
2. b) Only (ii) above.
3. c) Both (i) & (ii) above.
4. d) All of the above.
Que. 2 : Q2) ___________refers to the professional management of investment such as stock and bounds along with real estate, set realistic goals to increase the insurer’s/ reinsurer’s wealth and measure the performance.
1. a) Risk Retention Financing
2. b) Self insurance
3. c) Captive
4. d) Asst management
Que. 3 : Q3) The Contract of Reinsurance (Choose the incorrect one)
1. a) Is normally the same and identical Contract from the original insurance.
2. b) Does not take on the form of an insurance Contract.
3. c) Need not cover the Reinsured’s entire obligation under the original insurance contract.
4. d) Can provide a Cover wider than originally insured.
Que. 4 : 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?
1. a) Facultative Reinsurance
2. b) Treaty Reinsurance
3. c) Proportional Treaty Reinsurance
4. d) Non-Proportional Treaty Reinsurance
Que. 5 : Q5) Which of the following is correct with respect to facultative reinsurance?
1. a) Ceding insurer does not have the option to cede in facultative reinsurance
2. b) ceding reinsurer has the option to cede in a facultative reinsurance
3. c) reinsurer does not have the option to accept facltative reinsurance
4. d) Reinsurer does not have the option to decline risk of insurance company.