IC85 REINSURANCE MANAGEMENT EXAM - 15

Que. 1 : Q1) In a reinsurance company, Who is responsible for the acceptance of business and the profits made?

   1.  a) Agents

   2.  b) Brokers

   3.  c) Underwriters

   4.  d) Regulators

Que. 2 : Q2) The clause which provides that in the event of the reinsured’s insolvency any part of a loss covered by reinsurance be paid directly to the original insured by the reinsurer-

   1.  a) Commutation clause

   2.  b) Intermediary clause

   3.  c) Reinsuring clause

   4.  d) Cut through clause

Que. 3 : Q3) Reinsurance ledgers are typically held by….

   1.  a) Brokers

   2.  b) Reinsurers

   3.  c) Reinsured

   4.  d) Either (b) or (c) above.

Que. 4 : Q4) Utilisation ratio is…

   1.  a) Total ceded earned premium / Assumed earned premium.

   2.  b) Total ceded earned premium / Direct premium.

   3.  c) Total ceded earned premium / (Direct + Earned premium)

   4.  d) (Direct + Earned premium) / Total ceded earned premium.

Que. 5 : Q5) The most common form of proportional treaties are….

   1.  a) Facultative obligatory Treaty.

   2.  b) Surplus / Quota Share.

   3.  c) Excess of loss Treaty.

   4.  d) Stop loss Treaty.