Q-11- Due to High administrative cost in ________ reinsurance, it is replaced by ________ reinsurance.
- Facultative, Treaty
- Treaty, Facultative
- Quota Share, Facultative
- facultative, Excess of loss
Option-1 Due to High administrative cost in facultative reinsurance, it is replaced by treaty reinsurance.
Q-12- Facultative reinsurance is widely used due to
- to reduce the insurer’s liability in a certain area
- reduce liability to traty reinsurers on certain risks
- to obtain the reinsurer’s advice on doubdtful risks
- All of above
Option-4 Facultative reinsurance is widely used due to all of above advantages.
Q-13- Which of the following is correct with resppect to facultative reinsurance?
- Ceding reinsurer has the option to cede in facultative reinsurance
- Reinsurer does not have the option to accept facultative reinsurance
- Reinsurer does not have the option to decline risk of insurance company
- Ceding insurer does not have the option to cede in facultative reinsurance
Option-1 Under Facultative reinsurance Ceding reinsurer has the option to cede in facultative reinsurance.
Q-14- Employee Deposit Lined Insurance Scheme(EDLI) act applies on
- Any organisation that has more than 10 employees.
- Any organisation that has more than 15 employees.
- Any organisation that has more than 20 employees.
- Any organisation that has more than 25 employees.
Option-3 Any organisation that has more than 20 employees needs to register for EPF. Therefore, any employee who has an EPF account automatically becomes eligible for the EDLI scheme.
Q-15- The most common method used to estimate ultimate loss levels consists of claim history tracking is known as
- Triangular Method
- Roller Skating Rink Retention Group Rating Method
- Workers Compensation Pool Experince Rating Plan
- Insurance Servises Office(ISO) Commercial General Liability Experience and Schedule Rating Plan
Option-1 The most common method used to estimate ultimate loss levels consists of claim history tracking is known as Triangular Method.
Q-16- In order to rate the Insurance cover, the Insurer has to understand
- The total value of property exposed to such loss
- The possibility of or likelihood of loss causing event
- The theory of Probability and Operation of the law of large numbers.
- All above
Option-4 TO rate Insurance cover, insurer has to understand all above.
Q-17- What is ‘Attestation Clause’?
- Authorising by a Notary or court
- Authorising by a certified Health Practitioner
- Authorising policy by the employer of policyholder
- Authorising the policy by the signature of the insurer
Option-4 Attestation Clause refer to Authorising the policy by the signature of the insurer.
Q-18- Choosing an Insurer should be based on below factors EXCEPT
- Stability of Insurer
- Claim settlement ratio
- Market recognize Brand logo
- Market share in comparision to its competitors
Option-3 Market recognized Brand Logo doesn’t indicate any stability, service guarantee or feedback about any Insurer.
Q-19- Choosing a Reinsurer should be based on below factors EXCEPT
- Claim handling ability
- Underwriting capabilities
- Financial security & value
- country of origin of Reinsurer
Option-4 Country of Origin does not have any selection criteria of any Reinsurer.
Q-20- The Formula to calculate ‘Severity’ is
- S=L/C
- S=LxC
- S=L+C
- S=L-C
Option-1 Severity is calculated as Losses divided by Claim count.
These Insurance GK questions are based on Reinsurance and Insurance development in form of an Insurance quiz and answers.