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.