IC45 GENERAL INSURANCE UNDERWRITING - 12
| Q1.Why underwriting is important to insure? |
| a) It helps to match the needs of consumers with the standards set by insurers |
| b) It helps to stay competitive, solvent, and profitable |
| c) It helps the proposer to know how much he has to pay for insurance, the terms of coverage, exclusions, discounts |
| d) It helps to improve the standards of safety and care and achievement of the economic goals of the country |
| Q2.While doing the corrective actions ____ of all policies which has an undesirable loss exposure especially those policies displaying moral or moral hazards. |
| a) Modification of coverage |
| b) Non-renewal |
| c) Modifying the pricing |
| d) Modify the risk profile of the portfolio |
| Q3.Who plays an important role in ensuring that the product documents are written in clear unambiguous language that properly explains the nature and scope of cover, the exceptions, and limitations, the duties and obligations of the insured, and the effect of non-disclosure of material facts? |
| a) Compliance officer |
| b) Advocate |
| c) Appointed Actuary |
| d) None of these |
| Q4.At times, where the quantum of probable losses is very high or risk is heavy, rates are driven by reinsurance markets? |
| a) Class rating |
| b) Individual risk rating |
| c) Exposure to the losses |
| d) None of these |
| Q5.Which of the following are the benefits of technology-based underwriting? |
| a) Improved underwriting |
| b) Fraud detection |
| c) Faster time to market |
| d) All of these |
| Q6.Certificate by Appointed Actuary is in which form? |
| a) Form A |
| b) Form B |
| c) Form C |
| d) Form D |
| Q7.Insurers perform ___ to determine whether the assumptions made about customer's needs and trends, as well as about any proposed products and services are correct. |
| a) Emerging trends |
| b) Current customer trends |
| c) Market research |
| d) Internal staff reports |
| Q8.What is called as an amount which the policyholder agrees to bear in any claim? Only the loss amount that exceeds the deductible is payable by the insurer? |
| a) Cover note |
| b) Renewal notice |
| c) Deductible/Excess |
| d) Exclusions |
| Q9.The underwriting policy placed before the Board should cover. |
| a) The list of products that will fall into each of the 5 sub-categories listed in the File and; Use guidelines |
| b) The role and extent of involvement of the Appointed Actuary in a review of statistics to determine rates, terms, and conditions of cover |
| c) The delegation of authority to various levels of management for quoting rates and terms |
| d) All of the above |
| Q 10. Which of the following comprises all documents like Proposal form, Endorsements, Reinsurance Slip, and Renewal Notice? |
| a) Deductible |
| b) Re-insurance |
| c) Insurance documentation |
| d) Co-insurance |