IC45 GENERAL INSURANCE UNDERWRITING - 15
| Q1.Which of the following is incorrect? |
| a) Rates are the same as premiums. |
| b) A rate is the price of a given unit of insurance |
| c) Rates vary according to the likelihood and potential size of the loss. |
| d) Rate making is the process of calculating a price to cover the future cost of insurance claims and expenses. |
| Q2.Which risk is associated with the projection of future contingencies, which are inherently variable? |
| a) Parameter risk |
| b) Process risk |
| c) Individual risk |
| d) Loss development risk |
| Q 3. When the insured is unable to declare the separate value of stock in each godown but is able to declare the total value of all his stocks in various godowns, he can take insurance cover of: |
| a) Fire floating policy |
| b) Fire declaration policy |
| c) First loss policy |
| d) None of the above |
| Q4.Any communication received from a policyholder shall be responded to within ____ of its receipt. |
| a) 7 days |
| b) 10 days |
| c) 15 days |
| d) 30 days |
| Q5.For which of the following reasons is the emphasis of insurance companies shifted from the traditional product portfolio to innovative products, targeting selected customer segments? |
| a) General access to computers |
| b) Increase in number of customers |
| c) Increase in number of insurance |
| d) None of the above |
| Q6.Which policy is issued when the insured is not able to declare a separate value of stock in each godown but is able to declare the total value of all his stocks in various specified godowns? |
| a) First Declaration policy |
| b) First Loss policy |
| c) First Floating policy |
| d) None of these |
| Q7.Which of the following factors is considered as decision-based on the underwriting approaches of the company? |
| a) Lines of business to be written |
| b) Competitiveness of the rating |
| c) Management expense ratio |
| d) All of these |
| Q8.Insurance pricing is also known as _____. |
| a) Estimate |
| b) Comparision |
| c) Degree |
| d) Rate making |
| Q9.At the time of underwriting, exposure measurement is done on the basis of which of the following parameter/s? |
| a) Frequency |
| b) Severity |
| c) Extent of concentration |
| d) All of the above |
| Q10.Which of the following is a goal of market conduct supervision? |
| a) To promote efficiency in the conduct of insurance business |
| b) To protect the interests of policyholders |
| c) To gather information by undertaking inspection and conducting inquiries. |
| d) All of the above |