IC85 REINSURANCE MANAGEMENT EXAM - 10
| 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| Where both portfolio interest and portfolio loss are withdrawn from all the outgoing reinsurers at the year end and corresponding entries are given to the renewing reinsurers on the treaty for the New Year the method is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| Where both portfolio premium and portfolio loss are withdrawn from all the outgoing reinsurers at the year end and corresponding entries are given to the renewing reinsurers on the treaty for the New Year the method is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| Where both portfolio premium and portfolio loan are withdrawn from all the outgoing reinsurers at the year end and corresponding entries are given to the renewing reinsurers on the treaty for the New Year the method is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 |