IC85 REINSURANCE MANAGEMENT EXAM - 09
| 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 |