IC85 REINSURANCE MANAGEMENT EXAM - 01
| Q1.A ceding insurers retention in Surplus Reinsurance is known as__. |
| Surplus limit |
| Line |
| PML |
| Quota share |
| Q2.ABC Lt(a) A ceding insurer wants to know about long-tail business. Explain. |
| In long-tail business, claims are absent |
| In long-tail business, claims are almost secured |
| In long-tail business, the claims are known immediately |
| In long-tail business, the claims are not known for many years |
| Q3.After nationalization ___ became an Indian reinsurer company. |
| SEBI |
| NFC |
| GARLIC |
| IRDAI |
| Q4.Benefit of reciprocal trading is— |
| that it disables the ceding insurer to add to his net premiums and net profits. |
| that it enables the ceding insurer to add to his net premiums and net profits. |
| that it enables the ceding insurer to add to his net premiums and net loss. |
| that it enables the ceding insurer to remove his net premiums and net profits. |
| Q5.Choose the correct option with regards to reinsurance. |
| There are two basic types of reinsurance arrangements: facultative reinsurance and treaty reinsurance. |
| In treaty reinsurance transactions, the ceding company transfers all risks within a book of business to the reinsurer. |
| The consideration for the reinsurance contract is the reinsurance premium paid by the reinsured to the reinsurer |
| All of these |
| Q6.Design a logical and most appropriate conclusion for the following sentence: An important data that should be capable of being made available from a good information system used by the primary insurer should be: |
| Annual working capital requirement |
| Number of reinsurers in the international market |
| Codes generated for catastrophe losses |
| Number of intermediaries in the international market |
| Q7.For which of the following types of business will the accounting be rendered on an “underwriting year “basis? |
| fire and accident proportional reinsurance |
| fire and accident non-proportional reinsurance |
| marine proportional reinsurance |
| marine non-proportional reinsurance |
| Q8.How is the optimum capacity of the second surplus treaty determined? |
| The optimum capacity of the treaty is determined by trying out different limits and noting the resultant credit to liability balance |
| The optimum capacity of the treaty is determined by trying out different limits and noting the resultant premium to account balance |
| The optimum capacity of the treaty is determined by trying out different limits and noting the resultant loan to liability balance |
| The optimum capacity of the treaty is determined by trying out different limits and noting the resultant loan to account balance |
| Q9.In a program design stage who are those involved that leads to realism and synchronization with the best available design in the world reinsurance markets (i) professional reinsurer (ii) agents and brokers (iii) intermediaries |
| Only I |
| Both II and III |
| Only III |
| Both I and III |
| Q10.In the case of inward reinsurance, retrocession is required __. |
| for underwriting excess of loss |
| for sharing of risk |
| for enabling acceptance of economical lines |
| for gaining control of risk |