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 |