IC85 REINSURANCE MANAGEMENT EXAM - 02
| Q1.How many captive insurers operate worldwide? |
| 4000 |
| 1000 |
| 2000 |
| 5000 |
| Q2.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 |
| Q3.In the case of treaty reinsurance, the policy has to be signed ___. |
| By insurer only |
| By insurance broker |
| On behalf of each party |
| By agent |
| Q4.Judge the statement: The excess of loss contract is not concerned with any proportionate shares of the original sum insure(d) |
| This is a correct statement |
| This is a wrong statement, but maybe ratified by court order on a case-to-case basis |
| This is a wrong statement, but maybe ratified by IRDA order |
| This is a wrong statement |
| Q5.On what basis may treaty reinsurance be transacted? |
| Proper or improper basis |
| Regulatory or non-regulatory basis |
| Promotional or non-promotional basis |
| Proportional or non-proportional basis |
| Q6.An organization can internally connect all its executives and offices through a private internet arrangement known as an extranet. Is this a valid statement? |
| Yes, this is a valid statement |
| The validity depends on the turnover of the organization |
| The validity depends on the size of the organization |
| No, not valid since such an arrangement is called an intranet |
| Q7.Propose a phrase for the concept of the reinsurance program. |
| Stabilization program |
| Protection for gross business |
| Optimization plan |
| Improvement phase |
| Q8.The __clause states that the premium is to be paid to the reinsurer at the same rate as received by the ceding insurer |
| Original conditions |
| Underwriting |
| Net retained lines |
| Ultimate net loss |
| Q9.The function of the ____ is to reimburse the ceding insurer with a pro-rata amount of what he has paid in acquiring the business - agency commission and expense of management. |
| Manufacturing commission |
| Graduated commission |
| Purchasing commission |
| Reinsurance commission |
| Q10.The reinsurer should be aware of the following criteria, find out the false statement |
| accepting too much business of a particular class |
| accepting too much business of a particular territory |
| accepting balanced business and thereby expose to losses |
| only a & b are true |