IC85 REINSURANCE MANAGEMENT EXAM - 03
| Q1.For which of the following under this type of business as such factors will be taken into account when arriving at the rate for the treaty through a brokerage is determined separately |
| fire and accident proportional reinsurance |
| fire and accident non-proportional reinsurance |
| marine proportional reinsurance |
| marine non-proportional reinsurance |
| Q2.How much percent is usual to note in practice loading with regards to ‘Pure Burning Cost’? |
| 90% - 95% |
| 45% - 65% |
| 25% - 30% |
| 35% - 45% |
| Q3.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 |
| Q4.In the case of treaty reinsurance, what is the signing rule for a reinsurance contract? |
| The policy has to be signed by the ceding insurer |
| The policy has to be signed by the reinsured |
| The policy has to be signed by or on behalf of each party |
| The policy has to be signed by an insurance broker |
| Q5.Judge which of the following statement is valid? (i) The entire amount of insurance loss, including deductibles but net of salvage and recoveries are known as ultimate net loss (ii) The entire amount of insurance loss, including deductibles but net of salvage and recoveries are known as ground-up loss (iii) The entire amount of insurance loss, including deductibles but net of salvage and recoveries is known as gross loss (iv) The entire amount of insurance loss, including deductibles but net of salvage and recoveries is known as a total loss |
| Only I |
| Both II and III |
| Only II |
| Only IV |
| Q6.On which law, the law of reinsurance is primarily based? |
| Law of morals |
| Law of good faith |
| Law of contracts |
| Law of profit |
| Q7.People who are interested in the financial information are: - |
| owners or shareholders, management and employees |
| government regulatory bodies, taxation authorities, creditors, those with whom the insurer deals or trades, etc. |
| Others such as financial analysts, trade associations, and competitors. |
| All of these |
| Q8.Propose a solution for avoiding wide fluctuations of profits, in the context of reinsurance program designing. |
| Accept premium reciprocity |
| Do not accept premium reciprocity |
| Do not accept large premium reciprocity from a treaty with low average profitability |
| Do not accept large premium reciprocity from a treaty with high average profitability |
| Q9.The ____clause allows the possibility of making amendments, consent of both the parties, addendum forming an integral part of and binding on the parties. |
| access to records |
| alterations |
| errors and omissions |
| arbitration |
| Q10.The larger the ___the smaller the degree of fluctuation. similarly, smaller the experience may be bad |
| risk |
| loss |
| portfolio |
| retention |