IC45 GENERAL INSURANCE UNDERWRITING - 16
| Q1.Any delay in discharging the claim once the offer of settlement has been accepted by the insured, shall attract interest at a rate that is ____ above the prevailing bank rate. |
| a) 1% |
| b) 2% |
| c) 3% |
| d) 4% |
| Q2.Which of the following is correct about High exposure areas where adverse results can appear? |
| a) Loss reserves are not correctly computed |
| b) Requires tighter control on claim assessors |
| c) Introducing deductibles or increasing them |
| d) New rates need to be competitive in the market with other insures |
| Q3.___ make it possible for insurers to improve the accuracy and speed of the underwriting process. They can respond to agents within minutes and dramatically reduce the turnaround time for policy issuance. |
| a) Packaged underwriting systems |
| b) exception-based underwriting |
| c) Web-based technologies |
| d) Technology |
| Q4.Which of the following is not likely to be the responsibility of the Insured's Lawyer? |
| a) Ensuring product documents are written in an unambiguous language |
| b) Ensuring product documents clearly explain the nature and scope of cover |
| c) Ensuring policy documents are in an agreed size |
| d) Ensuring proposal form requests information on matters material to the contract |
| Q5.The insurer shall communicate all decisions to the proposer within a reasonable period not exceeding___from receipt of proposals by the insurer. |
| a) 3 days |
| b) 7 days |
| c) 15 days |
| d) 30 days |
| Q 6. Which rating involves applying various factors to a base rate evolved out of characteristics of an insured/ or a group of homogenous risks? |
| a) Individual rating |
| b) Class rating |
| c) Catastrophe risk rating |
| d) None of these |
| Q7.If a proposal falls within the lowest risk boundaries of underwriting standards, the policy is issued on a _____. |
| a) Standard basis |
| b) Sub-st and ard basis |
| c) Preferred basis |
| d) None of these |
| Q8.Form C certificate to be given by the Lawyer. Say whether True or False. |
| a) True |
| b) False |
| Q9.An effective underwriter is one, who knows when to say _ to a risk that is not insurable under the parameters the underwriter has established, despite the attractiveness in terms of quantum of premium involved. |
| a) Yes |
| b) No |
| Q10.Which of the following is correct regarding the compliance officer? |
| a) He should hold responsibility for underwriting |
| b) He should be a junior in the organization |
| c) He shall be responsible to file a complete list of all products falling under categories as defined in the file and use guidelines |
| d) His role is to ensure that the insurer does not act improperly under the pressure of competition |