IC45 GENERAL INSURANCE UNDERWRITING – 14

Q1.Form A is a questionnaire to be completed and signed by the ___ furnishing the complete information of the product.
 

 a) Principal

 

 b) Designated Officer

 

 c) Agent

 

d) Either a or bC

 

Q2.Which of the following is not correct about the Pure Premium Method?
 

 a) It is based on exposure

 

 b) It does not require existing rates

 

 c) It requires existing rates

 

 d) It gives indicated rates

 

Q3.The underlying principle of_____ is that in a group, only a few individuals (and not all) would sustain due to the occurrence of an uncertain event.
 

 a) Law of large numbers

 

 b) Underwriting

 

 c) Risk transfer

 

 d) Broking

 

Q4.Which of the following comes under Property and Casualty Underwriter?
 

 a) Fire underwriters

 

 b) Life and Health underwriters

 

 c) Group Underwriters

 

 d) Liability underwriters

 

Q5.What does Underwriting mean?
 

 a) Attending to the Nominations

 

b) Scrutinising and making decisions on proposals

 

 c) Attending to Assignments

 

d) Tracking the performance of either party

 

Q6.If the Insurers decline proposals for insurance when they find that the proposal represents a risk that falls outside of their established underwriting standards?
 

 a) Policy to be issued on a preferred basis

 

b) Policy to be issued on an standard basis

 

 c) Policy to be issued on a substandard basis

 

 d) Proposal to be declined

 

Q7.Underwriting Safeguards for a Burglary insurance policy on First Loss Basis, the total value should be more than say _____.
 

 a) Rs.10 lakhs

 

 b) Rs.25 lakhs

 

 c) Rs.40 lakhs

 

 d) Rs.50 lakhs

 

Q8.___ the review will be done by the regulator. In some cases, the government also may intervene to make the rates acceptable to the public.
 

 a) Internally

 

 b) Externally

 

Q9.Is the amount that is calculated using actuarial techniques aimed at ensuring that the insurer earns profit even after payment of certain claims?
 

 a) Interest

 

 b) Premium

 

 c) Maturity amount

 

 d) None of these

 

Q10.While assessing the risk characteristics, the rating plan broadly looks at risks based on______
 

 a) Frequency of losses

 

 b) Severity of losses

 

 c) Both of the above

 

 d) None of the above

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