IC85 REINSURANCE MANAGEMENT EXAM - 05
| Q1.When will there be a maximum limit per loss occurrence? |
| If coverage is on a ''loss occurrence'' basis, there may be a maximum limit per loss occurrence |
| If coverage is on a ''risk excess of loss'' basis, there may be a maximum limit per loss occurrence |
| If coverage is on a ''catastrophe excess of loss'' basis, there may be a maximum limit per loss occurrence |
| If coverage is on ''each loss each risk'' basis, there may be a maximum limit per loss occurrence |
| Q2.Which of the following clauses is commonly found in all agreements and describe without any ambiguity the business coming within the scope of a reinsurance contract? |
| Operative Clause |
| Downgrade Clause |
| Commencement and Termination Clause |
| Sudden Death Claims |
| Q3.Which of the following is incorrect with respect to Reinsurance premium? |
| The Reinsurance premium paid by the ceding insurer to the reinsurer is a percentage of the original paid by the insured |
| The percentage paid to the reinsurers is the same as the percentage of the SI ceded by the ceding insurer |
| The premiums for any risks excluded from the treaty and the return premiums due under canceled policies are not included in the reinsurance premium |
| Commissions paid by the ceding insurer to agents and brokers are deducted from the reinsurance premium |
| Q4.Which of the following tools help in determining quality in the case of the inward reinsurance business? |
| management information system |
| credit rating |
| retrocession |
| foreign exchange expertise |
| Q5.Which remain a basis of protection for gross reinsurance business |
| Reinsurance cession |
| Reinsurance retention |
| Reinsurance program |
| Reinsurance design |
| Q6.Why does facultative reinsurance involve more administrative work? |
| It involves more administrative work as each offer has to be scrutinized and separate data maintained for retention, limits, rates, and reinsurer/s involved for each facultative placement |
| It involves more administrative work as each offer has to be renewed on a weekly basis |
| It involves more administrative work as employees are changed every month |
| It involves more administrative work as tax filing has to be done on a monthly basis |
| Q7.____ are agreements where two parties agree to a specified trade in the future at a specified time. |
| Future & Forward |
| Present & Backward |
| Future & Backward |
| Past & Forward |
| Q8.____are where 2 parties agree to trade but one party retains the right to opt-out of the trade |
| futures |
| forwards |
| options |
| swaps |
| Q9.Reinsurance parlance which of the following is only found in non-proportional treaty agreements. |
| Accounts and Statistics Clause |
| Attachments of Lesions Clause |
| Follow The Fortune Clause |
| Ultimate Net Loss Clause |
| Q10.ABC Ltd. an insurer, wants you to design a sentence/phrase which would describe a feature of the assessment of commitments. |
| The assessment should be done state wise |
| The assessment should be done zone wise |
| The assessment should be done class wise |
| The assessment should be done district wise |