IC85 REINSURANCE MANAGEMENT EXAM - 13

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Q1.Which of the following are inspection checkpoints? (i) Coverage checks. (ii) Underwriting checks. (iii) Accounting checks.
   a) Only (i) above.
   b) Only (ii) above.
   c) Both (i) and (ii) above.
   d) All of the above.
 
Q2._____refers to the professional management of investment such as stock and bounds along with real estate sets realistic goals to increase the insurer's/ reinsurer's wealth and measures the performance.
   a) Risk Retention Financing
  b) Self-insurance
   c) Captive
   d) Asst management
 
Q3.The Contract of Reinsurance (Choose the incorrect one)
   a) Is normally the same and identical Contract from the original insurance.
   b) Does not take on the form of an insurance Contract.
  c) Need not cover the Reinsured&rsquo's entire obligation under the original insurance contract.
   d) Can provide a Cover wider than originally insured.
 
Q4.Which is the one whereby the reinsurer receives a predetermined proportion or share of the premium and pays the same proportion or share of loss?
   a) Facultative Reinsurance
   b) Treaty Reinsurance
   c) Proportional Treaty Reinsurance
   d) Non-Proportional Treaty Reinsurance
 
Q5.Which of the following is correct with respect to facultative reinsurance?
   a) Ceding insurer does not have the option to cede in facultative reinsurance
   b) ceding reinsurer has the option to cede in a facultative reinsurance
  c) reinsurer does not have the option to accept facultative reinsurance
  d) Reinsurer does not have the option to decline the risk of the insurance company.
 
Q6.Under excess of loss if the cover is for 20 crores in excess of 10 crores then the cover limit is
   a) 10 crores
   b) 20 crores
   c) 30 crores
   d) None of the above
 
Q7.In countries where minimum solvency margins based on net premiums are applied, reinsurance can reduce the net premiums. What does this statement imply?
  a) An insurer can accept an increasing volume of business without requiring a corresponding increase in capital.
  b) An insurer cannot accept an increasing volume of business before requiring a corresponding increase in capital.
  c) An insurer can accept an increasing volume of business after requiring a corresponding increase in capital.
  d) An insurer cannot accept an increasing volume of business after requiring a corresponding increase in capital.
 
Q8.Which of the following is correct with respect to per risk retention?
  a) Per Risk-retention can be managed through controlled and informed decisions.
   b) The per Risk retention is managed only through reasonable estimation of financial consequences.
  c) The per Risk-retention relates to the number of individual risk that could be hit by multiple events.
   d) The Per risk retention is managed by allowing a catastrophe reserve for funds to accumulate and be available over the long term.
 
Q9.The retention limit of the direct insurance is based upon
   a) Capital
   b) Risk profile of the portfolio
   c) Regulatory considerations
   d) All the above
 
Q10.ABC Company is seeing insurance for its tanker, an ocean-going vessel. ABC Company will have to seek insurance under____
   a) Property insurance
   b) Marine hull insurance
   c) Marine cargo insurance
   d) Life insurance

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