Q-11- An Open Cover is ________ an enforceable contract of Marine insurance.
- not
- always
- mandatorily Quota Share, Facultative
- facultative, Excess of loss
Option-1 An Open Cover is always an enforceable contract of Marine insurance.
Q-12- The word ‘Testing Period’ relates with
- EAR Policy
- D&O Policy
- Health Policy
- Marine Policy
Option-1 The word ‘Testing Period’ related with Project policies.
Q-13- Under EAR/SCE policies, the period of coverage start from
- the date of end of first construction at the site of erection.
- the date of arrival of first consignment at the site of erection.
- the date of start of actual construction at the site of erection.
- the date of completion of construction period at the site of erection.
Option-2 Under EAR/SCE policies, the period of coverage start from the date of arrival of first consignment at the site of erection.
Q-14- What is ‘TPND’ means?
- Tri Partirate Non Disclosure
- Theft, Profit and Non-Disclosure
- Theft, Pilferage and Non-Delivery
- Typhoon, Pilferage and Non-Delivery
Option-3 TNPD refer to Theft, Pilferage and Non-Delivery.
Q-15- One of advantage of Reinsurance is
- the net premium and losses are reduced over a shorter period of time.
- the net premium and losses are stablized over a shorter period of time.
- the net premium and losses are increased over a shorter period of time.
- the net premium and losses remain uneffected over a shorter period of time.
Option-2 The advantage of Reinusrance is the net premium and losses are stablized over a shorter period of time.
Q-16- ______________ is a contract of reinusrance whereby the ceding insurer may cede risks of any agreed class of insurance which the reinsurer must accept if ceded.
- Retrocession
- Treaty reinsurance
- Facultative reinsurance
- Facultative Obligatory treaty
Option-4 Facultative Obligatory treaty is a contract of reinusrance whereby the ceding insurer may cede risks of any agreed class of insurance which the reinsurer must accept if ceded.
Q-17- Which form of reinsurance can be placed during a weak reinsurance market conditions?
- Retrocession
- Treaty reinsurance
- Facultative reinsurance
- Facultative Obligatory treaty
Option-4 Facultative Obligatory treaty reinsurance can be placed during a weak reinsurance market conditions.
Q-18- Facultative Obligatory Treaty reinsurance is used to
- To faciltate writing of high value exposures or to deal with high accumulation.
- Where net retention is lowered on account of the degree of hazard this would back up the additional capacity as required.
- TO arrange automatic additional capacity for surplus after exhausting existing automatic arrangements for reinsurance cessions.
- All above
Option-4 Facultative Obligatory Treaty is used in all above three situations.
Q-19- Under Proportional reinsurance, if carefully structured, assist ti improve and stablise _____________ ratio over a period of time.
- net retained loss
- net retained profit
- net retained earnings
- net retained premiums
Option-1 Under Proportional reinsurance, if carefully structured, assist ti improve and stablise net retained loss ratio over a period of time.
Q-20- In _____________, the original reinsurer decides what part of the original insurance he wishes to retain for his own account and reinsurers the balance with a reinsurer.
- Treaty reinsurance
- Surplus reinsurance
- Facultative reinsurance
- Facultative Obligatory treaty
Option-1 In Surplus reinsurance, the original reinsurer decides what part of the original insurance he wishes to retain for his own account and reinsurers the balance with a reinsurer.
These Insurance GK questions are based on Reinsurance and Insurance development in form of an Insurance quiz and answers.