IC45 GENERAL INSURANCE UNDERWRITING - 10
| Q1.What is called a temporary document evidencing the receipt of premium and acceptance of the risk by the insurer, pending preparation and issuance of a fully worded insurance policy? |
| a) Cover Note |
| b) Renewal notice |
| c) Endorsements |
| d) Conditions |
| Q2.In cases where a surveyor has to be appointed, it shall be so done within _____ of the receipt of intimation from the insured. |
| a) 12 hours |
| b) 36 hours |
| c) 72 hours |
| d) 90 hours |
| Q3.Which of the following are the goals of market conduct supervision for the insurance business? i. To gather information by undertaking inspections and conducting inquiries and investigations. ii.TO ensure that members of the professional organizations connected with the insurance and reinsurance business are duly qualified and competent. iii. To ascertain that insurers adhere to approved rates, advantages, terms, and conditions of insurance products that they offer to the general public. |
| a) i and ii |
| b) ii and iii |
| c) i and iii |
| d) i,ii and iii |
| Q4.Which of the following documents are required for class rated products: I) Sales literature II) Policy wording III) Proposal form IV) Claim form |
| a) I, II |
| b) II, III |
| c) II, III, and IV |
| d) All of the above |
| Q5.Which of the following is not correct about the Pure Premium Method? |
| a) It is based on exposure |
| b) It does not require existing rates |
| c) It requires existing rates |
| d) It gives indicated rates |
| Q6.If the interpretation in the ____ is open to larger risk coverages than anticipated, more claims or larger claims will get paid resulting in underwriting losses. |
| a) Rating |
| b) Underwriting |
| c) Policy wording |
| d) High expenses |
| Q 7. Reinsurance is a contract of insurance between a primary insurer and a reinsurer whereby the primary insurer transfers a part of its business to the reinsurer in return for a commission called the _____. |
| a) Bonus commission |
| b) Ceding commission |
| c) Insurance commission |
| d) None of these |
| Q8.The role of___is to ensure that the insurer does not act improperly under the pressure of competition. |
| a) Compliance officer |
| b) Appointed actuary |
| c) Moderator |
| d) Advocate |
| Q9.Insurers must develop new strategies and deploy technologies: i. TO support underwriting optimization ii. To ensure improved underwriting profitability iii. To support traditional methods of the insurance process |
| a) i and ii |
| b) ii and iii |
| c) i and iii |
| d) i,ii and iii |
| Q10.Which of the following is an example of internal tariff-rated products? |
| a) Life Insurance |
| b) Motor insurance |
| c) Health insurance |
| d) Both b and c |