IC85 REINSURANCE MANAGEMENT EXAM - 04
| Q1.Categorize ''Lloyds'' appropriately. |
| Market |
| Reinsurer |
| Insurer |
| Regulator |
| Q2.Choose the correct statement: - |
| The stability of a portfolio as it grows and in contrast to the relative volatility of a small portfolio is referred to as balance |
| The aim in determining retention is not to eliminate fluctuation but to determine the degree of acceptable fluctuations |
| The larger the portfolio the smaller the degree of fluctuation |
| All of these |
| Q3.Explain to PQR Ltd a reinsurer, the advantage of reinsurance in countries where minimum solvency margins based on net premiums are applied? |
| Increasing volume of business without increasing asset base |
| Increasing volume of business without increasing marketing efforts |
| Increasing volume of business without increasing cash base |
| Increasing volume of business without increasing capital |
| Q4.GIC-RE is giving the best rating in the year |
| 2010 |
| 2011 |
| 2012 |
| 2015 |
| Q5.Identify the odd man out. |
| The Insurer's capital |
| The Insurer's free reserves |
| The Insurer's assets |
| The insurer's memorandum of association |
| Q6.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 |
| Q7.In India, IRDA has stipulated the use of reinsurers with ratings below certain limits. As per IRDA, these ratings cannot be below |
| AAA |
| AAB |
| BBB |
| CCC |
| Q8.Judge, which of the following statements are valid? (i) Credit rating is the job of an auditor (ii) Credit rating is the job of IRDA (iii) A credit rating is an opinion that takes deductibles into account (iv) A credit rating is an opinion that does not take deductibles into account |
| Only II |
| Both I and III |
| Only IV |
| Both IV and I |
| Q9.One of the factors influencing retention is false, find out |
| The Insurer’s Assets, Capital, Free reserves |
| The portfolio of risks |
| When Liabilities exceeds Assets |
| Completion, Rating, and Inflation |
| Q10.Plan as to what can be done to denote minimum accumulation from two risks? |
| Include ''Single Risk warranty'' within the contract |
| Include ''All Risk warranty'' within the contract |
| Include ''No-Risk warranty'' within the contract |
| Include "Two Risk warranty'' within the contract |