IC45 GENERAL INSURANCE UNDERWRITING - 14
| Q1.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 bC |
| Q2.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 |
| Q3.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 |
| Q4.Which of the following comes under Property and Casualty Underwriter? |
| a) Fire underwriters |
| b) Life and Health underwriters |
| c) Group Underwriters |
| d) Liability underwriters |
| Q5.What does Underwriting mean? |
| a) Attending to the Nominations |
| b) Scrutinising and making decisions on proposals |
| c) Attending to Assignments |
| d) Tracking the performance of either party |
| Q6.If the Insurers decline proposals for insurance when they find that the proposal represents a risk that falls outside of their established underwriting standards? |
| a) Policy to be issued on a preferred basis |
| b) Policy to be issued on an standard basis |
| c) Policy to be issued on a substandard basis |
| d) Proposal to be declined |
| Q7.Underwriting Safeguards for a Burglary insurance policy on First Loss Basis, the total value should be more than say _____. |
| a) Rs.10 lakhs |
| b) Rs.25 lakhs |
| c) Rs.40 lakhs |
| d) Rs.50 lakhs |
| Q8.___ the review will be done by the regulator. In some cases, the government also may intervene to make the rates acceptable to the public. |
| a) Internally |
| b) Externally |
| Q9.Is the amount that is calculated using actuarial techniques aimed at ensuring that the insurer earns profit even after payment of certain claims? |
| a) Interest |
| b) Premium |
| c) Maturity amount |
| d) None of these |
| Q10.While assessing the risk characteristics, the rating plan broadly looks at risks based on______ |
| a) Frequency of losses |
| b) Severity of losses |
| c) Both of the above |
| d) None of the above |