Q-11- The York Antwerp Rules are a set of maritime rules that were established in
- 1979
- 1980
- 1981
- 1982
Option-2 The York Antwerp Rules are a set of maritime rules that were established in 1980.
Q-12- Which of the following involves proportionate sharing of the insurance among more than one insurer?
- Premium
- Cover note
- Reinsurance
- Co-insurance
Option-4 Co-insurance is the proportional sharing of the Insurance.
Q-13- When the same subject matter is insured more than one insurers, then this is called as
- Premium
- Reinsurance
- Co-insurance
- Double Insurance
Option-4 When the insurance policy is taken from more than one Insurers for same subject matter,then this is called double insurance.
Q-14- Which of the following is NOT an operating goal of an insurer?
- Earn a profit
- Concentrate risk
- Meet customer needs
- Fulfill its duty to society
Option-2 Concentrate risk
Q-15- What are the three core functions that exist within a typical insurer?
- Actuarial, claims, and underwriting
- Accounting, actuarial, and underwriting
- Actuarial, marketing and distribution, and sales
- Claims, marketing and distribution, and underwriting
Option-4 Claims, marketing & distribution, and underwriting are 3 core functions of insurer
Q-16- Which of the following errors is the most significant problem in measuring insurer profitability?
- Errors in setting adequate rates
- Errors in estimating loss reserves
- Errors in estimating sales growth
- Errors in estimating future investment returns
Option-2 Errors in estimating loss reserves is the most significant problem in measuring Insurer proftability.
Q-17- Which of the following is NOT a reason insurers are subject to governmental regulation?
- Guarantee insurer profit
- Maintain insurer solvency
- Prevent unfair discrimination
- Protect consumers against fraud
Option-1 Guarantee insurer profit
Q-18- Which of the following is the primary reason insurer solvency is monitored by regulators?
- Insurers are inherently financially unstable
- The cost of insurer insolvencies is shifted to taxpayers
- Insurers hold large sums of money for the benefit of consumers
- The claims-paying ability of insurers can be analyzed by most consumers and businesses
Option-3 As Insurers hold large sums of money for the benefit of consumers, so Insurer solvency is continuously monitored by its regulators.
Q-19- Which of the following are the three major goals of insurance rate regulation?
- Ensure that rates are adequate, are not excessive, and are unfairly discriminatory.
- Ensure that rates guarantee insurance company solvency, are affordable and are not overly complex.
- Ensure that rates do not allow insurers excessive or unreasonable profits, are high enough to pay all claims and expenses, and result in fair, consistent, and equitable charges among all insured groups.
- Ensure that rates are actuarially sound, are affordable to all, and are equitable.
Option-3
Q-20- Which of the following are advantages of allowing qualified producers to handle certain types of claims?
I. Lower loss adjustment expenses.
II. Larger payments to claimants.
III. Quicker service to policyholders.
- I only
- I and II only
- I and III only
- II and III only
Option-3 I and III only
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