Q1.Which of the following factors are considered for deciding the amount of retention?
  a) Paid-up capital and free reserve
   b) Expected gross premium
   c) foreign exchange regulations
   d) All of the above
Q2.____ is the process by which the insurers determine the premium to be charged from the insured for accepting a particular risk under the insurance contract.
   a) Rate
   b) Product design
   c) Pricing
   d) Product
Q3.Which rating involves applying various factors to a base rate evolved out of characteristics of an insured/ or a group of homogenous risks?
   a) Individual rating
   b) Class rating
   c) Catastrophe risk rating
   d) None of these
Q 4. If the proposers who are issued policies with standard rates fall within the normal boundaries of underwriting standard for that type of policy?
  a) Policy to be issued on a preferred basis
  b) Policy to be issued on a standard basis
  c) Policy to be issued on a sub-standard basis
   d) Proposal to be declined
Q5.____the cover is an option that helps to secure a negotiated balance between the need for the widest cover desired by the customer and obtaining a fair price for the cover
   a) Constructing
   b) Structuring
   c) Configuring
   d) Organising
Q6.Which of the following is the role of moderator?
  a) To file a complete list of all products falling under categories as defined in the 'Fand; U' guidelines.
  b) To ensure that terms are determined on a sound technical basis and not merely to meet competition in pricing regardless of logic
   c) File a list of risks underwritten as large risks
  d) To monitor business activities of the insurer and ensure that all products being sold by the insurer are in compliance with underwriting policy
Q7.____ focuses on the lifetime value of a customer and addresses various issues such as customer acquisition, retention, loyalty, cross-selling, etc.,
   a) Target marketing
   b) Predictive data mining
   c) Customer relationship management
   d) Underwriter
Q8.ABC insurance company is a new entrant in the insurance market. As a marketing strategy, it has decided to accept the risk at lower premium rates as against the prevailing market rates. What could be the repercussions of this?
   a) The insurance company will lose business to competitors.
   b) It will face regulatory hurdles
   c) The insurance company could become insolvent when large claims, whether by frequency or severity, are filed.
   d) It will earn profit by maximizing sales.
Q9.Approval of the Controlling Office is necessary before acceptance of certain classes of business based on the size or complexity of the business or both. Which of the following classes comes under?
   a) Aviation
   b) Industrial All Risk Policy
   c) Public Liability, Products Liability
   d) All of these
Q10.Which deductible is expressed as a specified amount?
   a) Straight deductible
   b) Percentage deductible
   c) Combination of straight and percentage deductible
   d) None of these

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