IC85 REINSURANCE MANAGEMENT EXAM - 04
Que. 1 : Q1) The two forms of Reinsurance are
1. a) Proportional and Non-Proportional
2. b) Treaty and Facultative
3. c) Obligatory and Non-Proportional
4. d) Proportional and Facultative
Que. 2 : Q2) The oldest form of Re-insurance is ……..
1. a) Treaty Insurance
2. b) Quota Share
3. c) Facultative
4. d) Obligatory
Que. 3 : Q3) Surplus Treaty is (choose the incorrect one out)
1. a) A Proportional Treaty covering all insured risks which have sums insured above a specified amount.
2. b) Unrelated to the Net Retention of the Company.
3. c) A Contract whereby the Reinsured and the Reinsurer have mutual understanding as to structure, content and original rating of the business ceded to the Surplus.
4. d) An automatic Reinsurance arrangement.
Que. 4 : Q4) In the Reinsurance market, a Re-insurance contract is evidenced by
1. a) Policy
2. b) Stamped Slip
3. c) Endorsement
4. d) Cover note
Que. 5 : Q5) Which of the following factors will help faster debt collection?
1. a) Detailed reconciliation of the balances due from the reinsurer.
2. b) Discipline in the management of documentation.
3. c) Giving importance to the settlement system to meet the challenge of the debt collection.
4. d) All of the above.