IC45 GENERAL INSURANCE UNDERWRITING - 09
| Q1.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 |
| Q2.Changes in the state of the subject matter that is accepted and incorporated by the insurer in his book are called___under the policy. |
| a) Endorsements |
| b) Modification |
| c) Variations |
| d) Amendments |
| Q3.I) Requires tighter control on claim assessors II) There could also be unnecessary claim expense leading to adverse results III) More oversight on patterns of claims being lodged to understand any leakage. It all refers to which area where adverse results can appear? |
| a) Reserving |
| b) High exposures |
| c) Claim to process |
| d) Loss cause analysis |
| Q4.In special circumstances, he may seek an extension but in no case shall take more than _____ from the date of his appointment to furnish his report. |
| a) 6 months |
| b) 7 months |
| c) 9 months |
| d) 12 months |
| Q5.Which are the process where only high-risk or exception cases are handled through manual underwriting, can be established and used to improve decision consistency, speed the decision process, and help reduce the workload in the underwriting department? |
| a) Packaged underwriting systems |
| b) exception-based underwriting |
| c) Web-based technologies |
| d) Technology |
| Q6.Which of the following is the correct formula of Loss ratio? |
| a) Loss ratio = Earned premium x 100 / Incurred losses |
| b) Loss ratio = Incurred losses x 100 / Earned premium |
| c) Loss ratio = Underwriting expenses x 100 / Written premium |
| d) None of the above |
| Q7.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 b |
| Q8.For certain reasons, the regulator can withdraw products-which of the following is NOT one of these reasons? |
| a) The product is not appropriate for any reasons |
| b) The product does not carry rates, terms, and conditions that are fair between the parties |
| c) It has unsatisfactory documentation |
| d) It is not available in regional language |
| Q9.Approval of the ______ is necessary before acceptance of certain classes of business based on the size or complexity of the business or both. |
| a) Branch manager |
| _ b) Controlling office |
| c) Corporate office |
| d) Regional office |
| Q10.Under what method of underwriting does an underwriter assign positive rating points for all negative or adverse factors (negative points for any positive or favorable factors |
| a) Judgment |
| b) Arbitrary |
| c) Numerical rating |
| d) Single-step |