IC85 REINSURANCE MANAGEMENT EXAM - 10

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Q1.PQR Ltd. claims that OPTIONS are where two parties agree to a trade in the future but one party retains the right to opt-out of the trade. Is this a valid claim?
   No, this claim is about securitization
   No, this claim is about the futures
   No, this claim is about the swaps
   Yes, this is a valid claim
 
Q2.SEBI stands for
   Securities and Excess Board of India
   Securities and Exchange Board of India
   Strength and Excess Board of India
   Strength and Exchange Board of India
 
Q3.The contract where the distribution of the loss is based on the loss and not on the amount insured is called___.
   Proportional Reinsurance
   Non – Proportional Reinsurance
   Treaty Reinsurance
   Facultative Reinsurance
 
Q4.The primary consideration in the placement of cargo treaties is th
   stability of the reinsurance arrangements
   spreading of the risk in other portfolios
   to obtain larger reinsurance capacity
   to maintain consistent records of profits
 
Q5.Under a reinsurance contract, an ______ is indemnified for losses occurring on its insurance policies covered by the reinsurance contract.
   Insurer
   Insured
   Investigator
   Analyst
 
Q6.What is the swap?
   Swap is an agreement to an exchange of risk under different terms
  A swap is an agreement where three parties agree to a specified trade in the future at a specified time
  A swap is an agreement where two parties agree to a specified trade in the future at a specified time
  Swap is where two parties agreed to a trade in the future but one party retains the right to opt-out of the trade
 
Q7.When is a method known as the "clean-cut" method?
  Where both portfolio interest and portfolio loss are withdrawn from all the outgoing reinsurers at the year end and corresponding entries are given to the renewing reinsurers on the treaty for the New Year the method is known as the "clean-cut" method
  Where both portfolio premium and portfolio loss are withdrawn from all the outgoing reinsurers at the year end and corresponding entries are given to the renewing reinsurers on the treaty for the New Year the method is known as the "clean-cut" method
  Where both portfolio premium and portfolio loan are withdrawn from all the outgoing reinsurers at the year end and corresponding entries are given to the renewing reinsurers on the treaty for the New Year the method is known as the "clean-cut" method
  Where both portfolio share and portfolio loan are withdrawn from all the outgoing reinsurers at the year end and corresponding entries are given to the renewing reinsurers on the treaty for the New Year the method is known as the "clean-cut" method
 
Q8.Which is the most common form of reinsurance treaty wordings?
   The most common form of reinsurance contract wordings are registered wordings
   The most common form of reinsurance contract wordings are contract wordings
   The most common form of reinsurance contract wordings are treaty wordings
   The most common form of reinsurance contract wordings are application wordings
 
Q9.Which of the following is categorized under high-risk area due to the frequency of bush fire?
   Sri Lanka
   Australia
   Scotland
   Ukraine
 
Q10.Which of the following provides a wider spread for the net retained the portfolio of the insurer with an improved balance thus ensuring greater stability in underwriting surplus?
   Reciprocal exchange of shares
   Reciprocal exchange of policies
   Reciprocal exchange of brokers
   Reciprocal exchange of treaties

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