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In the case of the parametric windstorm CAT Contract, the cluster clause is commonly used. Which of the following statements correctly specify the aforementioned clause?
I. A station is activated if it leads to a maximum wind speed greater than the threshold.
II. A border shall be drawn across such caused stations for a group of at least 12 stations.
III. The concept of a triggering incident is based on the peak wind speed recorded at the European Qualified Stations, the details received by the reinsurance agencies.
IV. The cluster must be sequentially related for at least 3 hours.
The concept of a triggering incident is based on the average wind speed recorded at the European Qualified Stations, the data received by the meteorological agencies. The station is activated if it leads to a maximum wind speed higher than the threshold. For a group of at least four stations, a border is drawn around these activated stations. The cluster must be sequentially related for a minimum of 3 hours.
The concept of a triggering incident is based on the average wind speed recorded at the European Qualified Stations, the data received by the meteorological agencies. The station is activated if it leads to a maximum wind speed higher than the threshold. For a group of at least four stations, a border is drawn around these activated stations. The cluster must be sequentially related for a minimum of 3 hours.
The loss occurring basis is perhaps the most popularly used, except for:
I. Maritime business lines
II. Manufacturing
III. Windstorm
IV. Earthquake
For example, the regulation was released in 2008 and influenced by the defeat in 2009. In the case of a failure that happens, the 2009 system will be in operation. The failure that exists is most widely used, except for manufacturing or maritime business lines.
For example, the regulation was released in 2008 and influenced by the defeat in 2009. In the case of a failure that happens, the 2009 system will be in operation. The failure that exists is most widely used, except for manufacturing or maritime business lines.
Which of the followings illustrate the essence of the in-force policy framework?
I. It just applies to the unwarranted cost in in-force measures.
II. It is small in reach and thus not commonly used.
III. The insurer can use it to run off expired policies.
IV. Reinsurers may continue to use this justification unless there are major improvements to the insurer’s underwriting rules.
The legislative rationale for in-force refers only to the unwarranted cost in in-force measures. It is small in reach and thus not commonly used. The insurer may use it to run off expired policies (i.e. where no new regulations are being sold).
The legislative rationale for in-force refers only to the unwarranted cost in in-force measures. It is small in reach and thus not commonly used. The insurer may use it to run off expired policies (i.e. where no new regulations are being sold).
Which of the following statements describe the nature and characteristics of stop-Loss reinsurance?
I. It represents the amount of a single loss, either per risk or per event.
II. This shall constitute the entire sum of the claims in the portfolio.
III. It operates in opposition to over-loss reinsurance.
IV. It’s a non-proportional form of reinsurance.
Stop-loss is a non-proportional form of reinsurance that functions similarly to over-loss reinsurance. Whereas the over-loss is related to a single loss number, either perchance or per case, and the stop-loss is applied to the overall amount of claims in the portfolio.
Stop-loss is a non-proportional form of reinsurance that functions similarly to over-loss reinsurance. Whereas the over-loss is related to a single loss number, either perchance or per case, and the stop-loss is applied to the overall amount of claims in the portfolio.
Reinsurance takes different forms in order to meet the needs of the insured and to make it possible to underwrite risks, whatever their value and existence. Choose statements that correctly reflect the essence of the facultative Treaty.
I. The business/risk must be ceded by the transition company in compliance with the terms of the contract and the comforting company must accept the reassuring business/risk.
II. All parties are free to behave in their own best interests, irrespective of any previous binding agreements.
III. All parties are restricted to behave in their own best interests respective of any previous binding agreements.
IV. Specific business/risk is provided by the insurer for approval or denial by the reinsurer.
Facultative deal (or fac.): particular business/risk is presented to the insurer for approval or denial by the reinsurer. All sides are able to behave with their own best interests, regardless of the previous contractual agreements. For example, very big insured properties such as a skyscraper may be re-insured with a facsimile.
Facultative deal (or fac.): particular business/risk is presented to the insurer for approval or denial by the reinsurer. All sides are able to behave with their own best interests, regardless of the previous contractual agreements. For example, very big insured properties such as a skyscraper may be re-insured with a facsimile.
The sequence of the reinsurance contracts is essential. Which of these phases is the first to be attempted?
Reinsurance is usually directed to take the first place:
1. Any facultative reinsurance, covering particular threats.
2. Any proportional structure, either Quota-Share or Surplus.
3. Any XL reinsurance chance.
4. Any disaster or clash XL reinsurance
5. Any stop loss to cover the net reinsurance results.
Reinsurance is usually directed to take the first place:
1. Any facultative reinsurance, covering particular threats.
2. Any proportional structure, either Quota-Share or Surplus.
3. Any XL reinsurance chance.
4. Any disaster or clash XL reinsurance
5. Any stop loss to cover the net reinsurance results.
Reinsurance incident excess policy involving two or more coverages or schemes, provided by the re-insured individual and participating in the injury, for compensation to be extended is referred to as:
Clash Excess of Loss: Reinsurance liability excess plan involving two or more coverages or policies, provided by the re-insured and included in the loss, for compensation to be extended. Typically, the annexation value of the reinsurance arrangement meets the limitations of either scheme.
Clash Excess of Loss: Reinsurance liability excess plan involving two or more coverages or policies, provided by the re-insured and included in the loss, for compensation to be extended. Typically, the annexation value of the reinsurance arrangement meets the limitations of either scheme.
Which of the following is specifically related to the risk Intermediate model that allows the transition of risk liabilities to the marketplaces?
Securitization is definitely connected to the risk Intermediate model that enables the transfer of risk obligations to the markets. As for reinsurance, it’s not that simple, it’s a hybrid model. This was initially seen by insurers who consider themselves as a liability warehouse.
Securitization is definitely connected to the risk Intermediate model that enables the transfer of risk obligations to the markets. As for reinsurance, it’s not that simple, it’s a hybrid model. This was initially seen by insurers who consider themselves as a liability warehouse.
Often the reinsurer understands the consequences better than the insurer, particularly for very specific risks (cat, pandemic, technological risks). In this point, the reinsurer is:
Often the reinsurer knew the consequences more than the insurer himself, especially for very particular risks (cat, pandemic, technological risks, etc.). By that point, the reinsurer is an insider.
Often the reinsurer knew the consequences more than the insurer himself, especially for very particular risks (cat, pandemic, technological risks, etc.). By that point, the reinsurer is an insider.
In compliance with Solvency II, which of the following threats could be significant for securitization in Property and Casualty Insurance?
I. Water reservation tasks
II. Market cycle
III. Reserve adequacy
IV. Catastrophes
Risk that is significant at the level of the insurer with low insider knowledge will be a good candidate for securitisation. Disaster, reserve adequacy, and market cycle are the key risks of property and casualty insurance.
Risk that is significant at the level of the insurer with low insider knowledge will be a good candidate for securitisation. Disaster, reserve adequacy, and market cycle are the key risks of property and casualty insurance.
Which of the following describe a transaction of transferring part of the risk from the insurer (cedant or ceding company) to the reinsurer?
Reinsurance cession is defined the transaction of transferring part of the risk from the insurer (cedant or ceding company) to the reinsurer. According to the content of the reinsurance contract, it can be a transfer of a whole or part of single risks, policies or parts of a business.
Reinsurance cession is defined the transaction of transferring part of the risk from the insurer (cedant or ceding company) to the reinsurer. According to the content of the reinsurance contract, it can be a transfer of a whole or part of single risks, policies or parts of a business.
Which of the following is defined as the maximum amount that an insurer agrees to pay for a single loss risk
Underwriting capacity: the maximum amount that the insurer expects to incur on a single loss risk while maintaining is the amount of insurance liability (in pro-rata, for compliance with the insurer) or catastrophe (in lieu of loss, for indemnity of excess loss by the insurer) that the insurer assumes (or retains).
Underwriting capacity: the maximum amount that the insurer expects to incur on a single loss risk while maintaining is the amount of insurance liability (in pro-rata, for compliance with the insurer) or catastrophe (in lieu of loss, for indemnity of excess loss by the insurer) that the insurer assumes (or retains).
Which of the following allows the insurer to keep small policies and to transfer the risk which is above the retention limit for the large policies?
The surplus method allows the insurer to keep small policies and to transfer the risk which is above the retention limit for the large policies. While Surplus treaty is a Reinsurance that allows the insurer to move and the re-insurer to take the risk that exceeds the retention limit.
The surplus method allows the insurer to keep small policies and to transfer the risk which is above the retention limit for the large policies. While Surplus treaty is a Reinsurance that allows the insurer to move and the re-insurer to take the risk that exceeds the retention limit.
Which of the following define as the reinsurer being responsible for losses which exceed the treaty retention only in exchange for premium agreed by the insurer and the reinsurer?
There is no proportional sharing of premium, losses and loss expenses for non-proportional reinsurance. The reinsurer is only liable for the losses that exceed the treaty retention in exchange for a premium, which is agreed between the reinsurer and insurer. The payment of the premium is agreed without making reference to the premium paid to the insurer.
There is no proportional sharing of premium, losses and loss expenses for non-proportional reinsurance. The reinsurer is only liable for the losses that exceed the treaty retention in exchange for a premium, which is agreed between the reinsurer and insurer. The payment of the premium is agreed without making reference to the premium paid to the insurer.
The related direct insurance portfolio needs to be specified as the duration of coverage. For example, in the case of lawsuits resulting from illnesses caused by asbestos. The claims asserted during the time protected by the agreement come beyond the meaning of the treaty if the settlement is on:
In the case of other cases , for example involving qualified criminal responsibility, the dates of occurrence of the occurrences giving rise to them and the filing of claim of the insured may be somewhat different. The case for lawsuits resulting from ailments caused by asbestos. When the Treaty is based on claims made, the claims asserted within the time protected by the Treaty shall come under the meaning of the Treaty.
In the case of other cases , for example involving qualified criminal responsibility, the dates of occurrence of the occurrences giving rise to them and the filing of claim of the insured may be somewhat different. The case for lawsuits resulting from ailments caused by asbestos. When the Treaty is based on claims made, the claims asserted within the time protected by the Treaty shall come under the meaning of the Treaty.
Payment processes are one of the provisions specific to all reinsurance treaties. When does the transferor collect the payments and pay the compensation amounts?
The transferor collects premiums and makes payments on a regular basis over the accounting period. The reproduction of these cash flows in real-time for the allocated portion will produce tremendous accounting costs.
The transferor collects premiums and makes payments on a regular basis over the accounting period. The reproduction of these cash flows in real-time for the allocated portion will produce tremendous accounting costs.
From the list of provisions applicable to all reinsurance contracts, which of the following points out how reinsurers will program successfully at the grounds of the transferor?
Audit: Some treaties set out how reinsurers will perform audits in the cedant premises. Such rules are seldom seen in practice. It appears when the reinsurers participate specifically in the administration of the lawsuit and, in this situation, have access to complete details in the hands of the transferor.
Audit: Some treaties set out how reinsurers will perform audits in the cedant premises. Such rules are seldom seen in practice. It appears when the reinsurers participate specifically in the administration of the lawsuit and, in this situation, have access to complete details in the hands of the transferor.
Which of the following provisions establishes an exposure-based reassurance system for policies?
I. The ACOD/A clause
II. The ACOD/B clause
III. The ACOD/C clause
IV. The ACOD/D clause
There are three separate accident-circuit workplace disorder (ACOD) provisions. The ACOD / A clearly states that every case is a special occurrence. The ACOD / C clause applies to countries such as Australia. The ACOD / B provision shall state the reinsurance scheme for exposure-based plans.
There are three separate accident-circuit workplace disorder (ACOD) provisions. The ACOD / A clearly states that every case is a special occurrence. The ACOD / C clause applies to countries such as Australia. The ACOD / B provision shall state the reinsurance scheme for exposure-based plans.
In the case that a transferor has a company in various countries and different currencies, there are unique provisions. Which of the provisions in question defines the currency of which any payment will be made?
I. Interlocking clause
II. Currency clause
III. Run-off clause
IV. Currency fluctuation clause
The money provision defines the money of which any payment is to be made. We use the exchange rate judgment on the date of money transfer for translation.
The money provision defines the money of which any payment is to be made. We use the exchange rate judgment on the date of money transfer for translation.
The primary issue of the reinsurer is to have an adequately hefty fee. In comparison, the insurer needs to pay a decent rate. From the comments below, which of the comments defines the essence of the deposit premium?
I. This premium is determined using the details provided by the insurer to the reinsurer.
II. The insurance premium shall be the amount larger than the adjustment of this rate to the insurer’s calculation of the amount of profits.
III. The fixed premium shall be the minimum price that the reinsurer wishes to earn towards the end of the year.
IV. The adjusted premium shall take into account actual premium profits during the treaty year and it is compatible with allowing incremental changes to the reinsurance premium.
The insurance premium shall be the amount equal to the adjustment of this rate to the insurer’s calculation of the amount of profits. The adjusted premium shall take into account actual premium profits during the treaty year and It is compatible with allowing incremental changes to the reinsurance premium. The fixed premium shall be the minimum price that the reinsurer wishes to earn towards the end of the year.
The insurance premium shall be the amount equal to the adjustment of this rate to the insurer’s calculation of the amount of profits. The adjusted premium shall take into account actual premium profits during the treaty year and It is compatible with allowing incremental changes to the reinsurance premium. The fixed premium shall be the minimum price that the reinsurer wishes to earn towards the end of the year.
Which of the following is the termination provision stating that in situations when the reinsurer is unpayable, refuses to satisfy its material duty under the reinsurance arrangement, or suffers a downgrading of the financial strength rating to a certain amount, the insurer has the option to cancel the reinsurance arrangement with immediate non-retroactive effect?
I. Commutation clause
II. Clean cut clause
III. Cut off clause
IV. Downgrading clause
Downgrading provisions states that in situations when the reinsurer is insolvent, elects to end its current contract, refuses to meet its material duty under the reinsurance arrangement, or suffers a reduction in financial strength to a certain amount, the insurer has the option to cancel the reinsurance arrangement with immediate non-retroactive effect.
Downgrading provisions states that in situations when the reinsurer is insolvent, elects to end its current contract, refuses to meet its material duty under the reinsurance arrangement, or suffers a reduction in financial strength to a certain amount, the insurer has the option to cancel the reinsurance arrangement with immediate non-retroactive effect.
Keeping in mind the points concerning the establishment of a vehicle, which of the following involves higher legal expenses, but which facilitates many CAT bonds to be issued?
The use of the shelf system is opposed to a single car. The Shelf System entails greater compliance risks, which allows for the issuing of certain CAT bonds.
The use of the shelf system is opposed to a single car. The Shelf System entails greater compliance risks, which allows for the issuing of certain CAT bonds.
In the case of a parametric arrangement, which of the following would be easier for the regulator to actually acknowledge?
The sort of cause selected has a significant effect on the framework of the agreement. For example, in the case of a parametric transaction, the regulator would consider the SPV more readily than the SPRV as the recoveries are not specifically relevant to the real damages of the company due to the high-risk base.
The sort of cause selected has a significant effect on the framework of the agreement. For example, in the case of a parametric transaction, the regulator would consider the SPV more readily than the SPRV as the recoveries are not specifically relevant to the real damages of the company due to the high-risk base.
All vehicles financed by the insurer should be covered by the Deal without having to name any particular individual policy. This belongs to which of the following arrangements?
Automatic settlement (or a contractual arrangement or more simply a deal): the re-insured business / risk must be ceded by the transferor in compliance with the terms of the contract and the re-insurer must recognize the re-insured business / risk. An example of this is the Auto Portfolio: all cars financed by the insurer should be covered by the Deal, without having to name any particular individual policy.
Automatic settlement (or a contractual arrangement or more simply a deal): the re-insured business / risk must be ceded by the transferor in compliance with the terms of the contract and the re-insurer must recognize the re-insured business / risk. An example of this is the Auto Portfolio: all cars financed by the insurer should be covered by the Deal, without having to name any particular individual policy.
The following are certain reasons for the utilization of facultative reinsurance. Which of the following reasons are true?
I. The insurer is not engaged in any of a specific scheme (not in the subscription guidelines).
II. The company was able to be reassured by a compulsory treaty.
III. Fac allows the insurer to raise its flexibility on other risks, by recovering surplus capacity,
IV. Of certain purposes, the company could not be reassured by a contractual arrangement.
For certain purposes (excluding risks), the organization could not be re-assured by a contractual arrangement. Fac instead helps the insurer to increase its flexibility on other risks, by recovering surplus capacity, and the insurer is not involved in part of a specific scheme (not in the subscription guidelines).
For certain purposes (excluding risks), the organization could not be re-assured by a contractual arrangement. Fac instead helps the insurer to increase its flexibility on other risks, by recovering surplus capacity, and the insurer is not involved in part of a specific scheme (not in the subscription guidelines).
This is probable for an insurer to pass its assets to a reinsurer, but it is not known to be a reinsurance. Such a transfer shall be called:
In a regulatory point of view, the insurer has the same duties towards the insured, with or without reassurance, as contrasted to coinsurance. This is necessary for the insurer to pass its assets to the reinsurer, but it is not known to be a reinsurance undertaking. Such a transition is considered a novation, and permission by the regulator or the insured is normally necessary.
In a regulatory point of view, the insurer has the same duties towards the insured, with or without reassurance, as contrasted to coinsurance. This is necessary for the insurer to pass its assets to the reinsurer, but it is not known to be a reinsurance undertaking. Such a transition is considered a novation, and permission by the regulator or the insured is normally necessary.
Public bodies will not have a direct effect on reinsurance. The main rule is that the insurance portfolio must be secured by a reinsurance plan. This can trigger problems in the case(s) of:
I. Securitization in which hedging is not ideal.
II. Revision of current contracts by courts
III. Personal troubles with the insurer.
IV. Legal complications with the insurer.
This may pose issues in the event of securitization, where hedging is not ideal, as we can see. In fact, in the event of legal issues of the insurer, for example in the case of the revision of current contracts by courts, re-insurers are frequently affected, except as specifically specified in the contract.
This may pose issues in the event of securitization, where hedging is not ideal, as we can see. In fact, in the event of legal issues of the insurer, for example in the case of the revision of current contracts by courts, re-insurers are frequently affected, except as specifically specified in the contract.
Which of the below about the insurance-linked securities referencing insurance risks are true?
Insurance risks that are issued to transfer exposures and create additional risk capacity refer to the ILS securities insurance risks.
Which phrase given is the correct one from your own personal perspective about risks?
The match between a loss-making exposure and a compensatory payment is imperfect when it comes to the risk of loss arising.
Which of the below regarding the adverse development cover a finite insurance contract can be considered true?
Adverse development covers a finite is an insurance contract which refers to any event or condition which is or with either notice or the passage of time being.
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