IC85 REINSURANCE MANAGEMENT EXAM - 06
Que. 1 : Q1) When there is a failure of a system, human errors, inadequate procedures and controls, we call it as
1. a) Objective risk
2. b) Operational risk
3. c) Human risk
4. d) None of the above
Que. 2 : Q2) Personal accident business carries catastrophe exposure in respect of
1. a) Group PA policies
2. b) Passengers in a vehicle
3. c) Passengers in a aircraft
4. d) All the above
Que. 3 : Q3) The Portfolio transfer percentage of 35% to 40% is arrived at by-
1. a) 60% method
2. b) 70% method
3. c) 75% method
4. d) 50% method
Que. 4 : Q4) Which of the following is / are not true with proportional facultative reinsurance?
1. a) The Re-insurer shares a proportional part of the ceded insurance liability
2. b) All the losses are to be transferred to the Re-insurer by the cedent
3. c) The Re-insurer pays directly to the original insured
4. d) Both (b) and (c) above
Que. 5 : Q5) In _________ business, a mix of risks producing a broad based premium and giving a good treaty balance, yielding fairly sustained positive results over a period of time is need.
1. a) Reciprocal business
2. b) Risk booked business
3. c) non risk booked business
4. d) Medium size business