IC45 GENERAL INSURANCE UNDERWRITING - 08

Q1.What refers to the process of determining the rate that can be charged by an insurance company for providing insurance cover to policyholders?
   a) Rate making
   b) Insurance pricing
   c) Underwriting
   d) Either a or b
 
Q2.The reinsurance agreement requires that a portion of the exposure, known as ___, be retained by the primary insurer.
   a) Endorsements
   b) Retention
   c) Renewal notice
   d) Portfolio management
 
Q3.The decision to issue a policy on a ____ occurs when a risk is not deemed to be outside underwriting standards but is considered to be of high risk within those standards.
   a) Proposal to be declined
   b) On a preferred basis
   c) On a sub-standard basis
   d) On a standard basis
 
Q4.Which policy combines two or more types of insurance covers into one policy?
   a) All Risks policy
   b) Named peril policy
   c) Packaged policy
   d) Special cover
 
Q5.In the triangle of the Loss development method, the vertical line represents
  a) the development of the claim over time
   b) change in exposure level
   c) the evaluation data
   d) None of these
 
Q6.A cover note is valid for how many days?
   a) 15 days
   b) 30 days
   c) 45 days
   d) 60 days
 
Q7.Which systems use the actual experience of the period to determine the final cost of that period?
   a) Prospective systems
   b) Retrospective Systems
 
Q8.The burglary policy is issued with a sum insured expressed as a percentage of the full value. e.g. ___ of the full value of Rs. 100 lakhs.
   a) 15%
   b) 25%
   c) 35%
   d) 40%
 
Q9.All such general insurance products can be sold by an insurance company with rates, terms, and conditions as per the _____ of the insurance company.
   a) Individual rated products
   b) Internal tariff rated products
   c) Exposure product
   d) Insurance of large risks
 
Q10.Who may suspend a product or withdraw from the market at any time if the product is not appropriate for any reason?
   a) Agent
   b) RBI
   c) IRDA
   d) Customer

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