IC45 GENERAL INSURANCE UNDERWRITING - 02

Mar 10, 2022 - 06:55
Sep 12, 2022 - 05:59
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Q1.The profit expectation on the sales and then examine whether the sales promotion costs are reasonable in terms of profit expectation in the short-term of say____.
   a) 2 years
   b) 3 years
   c) 4 years
   d) 5 years
 
Q2.The insurer shall communicate all decisions to the proposer within a reasonable period not exceeding___from receipt of proposals by the insurer.
   a) 3 days
   b) 7 days
   c) 15 days
   d) 30 days
 
Q3.Which of the following comes under prior approval laws?
   a) only require prior approval if the rate change is substantial, such as 10% to 25%
  b) rates must be filed and approved before they can be used
   c) eliminates all filling requirements but insurers may have to furnish rate schedules to the state insurance department.
   d) None of the above
 
Q4.Which of the following focuses on the lifetime value of customers?
   a) Target markting
   b) Value analysis
   c) Customer relationship management
   d) Predictive data mining
 
Q5.At which stage of provisional acceptance, the question of inspecting the risk is often considered. If the risk is large or involves complicated features, acceptance is decided on the basis of this?
   a) Declined risk
   b) Limits of acceptance
   c) Reinsurance arrangement
   d) Inspection report
 
Q6.Which of the following is correct?
   a) Pure Premium = Actual loss - Loss adjustment expenses / Number of Exposure units
   b) Pure Premium = Actual loss - Number of Exposure units / Loss adjustment expenses
   c) Pure Premium = Actual loss + Loss adjustment expenses / Number of Exposure units
   d) Pure Premium = Actual loss + Number of Exposure units + Loss adjustment expenses
 
Q7.Which of the following comes under the corrective actions for Reunderwiting?
   a) Modification of coverage
   b) Modify the underwriting guidelines
   c) Modify the pricing
   d) All of the above
 
Q8.Filing of rates and policy forms for the regulator's review ensures the protection of____.
   a) The consumer only
   b) The insurer only
   c) Both the consumer and the insurer
   d) Neither the consumer nor the insurer
 
Q9.Which of the following approaches can serve as a tool for underwriting?
   a) Underwriting policy
   b) Underwriting philosophy
  c) Use of reporting forms and trends emerging on the claims front
   d) All of these
 
Q10._____ensure that no one insures is overburdened while offering covers to policyholders.
   a) Risk pooling
   b) Risk sharing
   c) Underwriting
   d) Reinsurance

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