IC85 REINSURANCE MANAGEMENT EXAM - 09

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Q1.Which of the following options is available to an insurer or reinsurer accepting reinsurance business? (i) He can write lines for his net account i.e., write such shares as can be retained by himself without renewal (ii) He can write lines for his net account i.e., write such shares as cannot be retained by himself with the invention (iii) He can write lines for his net account i.e., write such shares as can be retained by himself without retrocession (iv) He can write lines for his net account i.e., write such shares as cannot be retained by himself without retrocession
   Only I
   Only III
   Only IV
   Both III and I
 
Q2.Which of the statements is incorrect with respect to credit rating? (i) Credit rating is a recommendation to purchase or discontinue any policy or contract issued by an insurer or reinsurer or to buy, hold or sell any security issued by an insurer (ii) A credit rating is not a guarantee of an insurers financial strength or security (iii) Credit ratings do not refer to an insurers or reinsurers ability to meet debt obligations (iv) Credit ratings are based on information furnished by rated insurer or reinsurers or obtained by the rating agency from other sources it considers reliable
   Only I
   Both II and III
   Only IV
   Only II
 
Q3.Who among the following is generally referred to as “Bankers to the insurance industry”?
   Lloyds of London
   WTO
   Reinsurers
   Captive companies
 
Q4.With the ____clause, the ceding insurer can make a provision for “termination without notice” in the event of certain other circumstances stipulated in the contract
   Operative Clause
   Downgrade Clause
   Commencement and Termination Clause
   Sudden Death Clause
 
Q5.____ is the main reason for an increase in demand for ART products. i) Increased fluctuations in the financial market ii) Higher reinsurance prices are driven primarily by a shortage of capacity in the retrocession market
   Only (i)
   Only (ii)
   Both (i) & (ii)
   None of these
 
Q6.____is an additional percentage payable to a ceding insurer on profitable treaties in accordance with an agreed formula
   overriding commission
   brokerage
   profit commission
   flat rate commission
 
Q7.A___is a specialist insurer writing only reinsurance business
   direct writing cos
   professional insurer
   professional reinsurer
   captive insurance market
 
Q8.ABC Ltd. wants you to design a sentence that would describe a feature of Lloyd's underwriters. Help it.
  Lloyd's brokers need to have experience only, professional qualifications are not required
  Lloyd's brokers need to have talents only, professional qualifications are not required
  Lloyd's underwriters write business solely through any broker who is registered
  Lloyd's underwriters write business solely through registered Lloyd''s brokers
 
Q9.As per IRDA regulation, who among the following can write inward reinsurance business from overseas insurers?
   only life insurance cos
   only non-life insurance cos
   only general insurance cos
   both life and non-life insurance cos.
 
Q10.Choose the correct option in case of the Original Condition Clause.
   The reinsurances are fully subject to the same terms and conditions as the original insurance
   The reinsurer follows his ceding insurer in his original contract of insurance with his insured
   Both a & b
   None of these

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