IC85 REINSURANCE MANAGEMENT EXAM - 07

Q1.____ is not a credit rating agency.
   A.M. Best
   Moody’s
   Fitch
   Ombudsman
 
Q2.___is the amount of the ceding insurers' loss that is eligible for recovery under the terms of an excess of loss treaty.
  Ground-up loss
   Ultimate Net Loss
   Net retained Loss
   Gross Loss
 
Q3.A reinsurer shall support a ceding insurer on what basis. Find the odd man out.
   if the ceding insurer is adequately capitalized
   if the ceding insurer is not adequately capitalized
   if the ceding insurer is in a financial difficulty
   if the ceding insurer is a known “rogue” to the market
 
Q4.ABC Ltd. wants to insulate the shareholder's funds from unpredictable losses. Devise a solution.
   Co-insurance
   Shared insurance
   Underwriting contract
   Reinsurance contract
 
Q5.Analyze the following statements: i. long term investment yields higher interest ii. investors can earn higher returns depending on their ability iii. liquid cash helps insurers to have sufficient liquid assets to pay a claim
   Only I and II are True and III is False and III IS FALSE
   Only II and III are True and I is False
   Only III and I are True and II is False
   All the above statements are True
 
Q6.Categorize ''Stop Loss'' appropriately.
   This method does not apply on the basis of per risk or catastrophe
   This method applies on the basis of per risk or catastrophe
   Only this method is allowed in India
   This method is not allowed in India
 
Q7.Complete the phrase which has been designed as follows - ''Unknown accumulations arising out of one event...... ‘
   Can get protected with the help of two risk covers
   Can get protected with the help of retention deposit covers
   Can get protected with the help of catastrophe covers
   Can get protected with the help of minimum deposit covers
 
Q8.For increasing the retained premiums in the country in which sector Indian Insurance Companies Association started the formation of Reinsurance pool in the year 1966?
   Motor
   Medical
   Fire and Hull
   Cargo
 
Q9.How are the basic statistics relating to a treaty collated?
   The basic statistics relating to a treaty are collated from bank statements as sent and received
   The basic statistics relating to a treaty are collated from information statements as sent and received
   The basic statistics relating to a treaty are collated from accounts statements as sent and received
   The basic statistics relating to a treaty are collated from transfer statements as sent and received
 
Q10.If there is a reciprocal exchange how is all the business exchanged with the insurer or reinsurer summarized?
   If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing premiums on one side and matching acceptances on the other side
   If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing claims on one side and matching acceptances on the other side
   If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing taxes on one side and matching acceptances on the other side
   If there is a reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, cessions on one side and matching acceptances on the other side

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