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Question 1 of 30
1. Question
Which of the below is true regarding the reinsurance definition given by Picard and Besson in 1982?
Correct
Incorrect
The official definition Picard and Besson gave in 1982 about the reinsurance refer to a contract between two parts being the reinsurer and the insurer. One of the main parts of the agreements is for the former to bear all the risks and to reimburse the remuneration.
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Question 2 of 30
2. Question
Which of the below is true when it comes to the formula for loss cost?
Correct
Incorrect
Loss Cost = ceded incurred loss/subject earned. Always the % of SEP needed to cover the historical excess incurred losses to the layer.
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Question 3 of 30
3. Question
What does the courtship refer to, considering the variants given to you below?
Correct
Incorrect
A relationship between two or more people accepting to divide a risk refers to courtship.
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Question 4 of 30
4. Question
Which of the below are valid types of insurance, considering the options given?
I. Property insurance.
II. Marine insurance.
III. Fire insurance.
IV. Life insurance.Correct
Incorrect
The type of insurance that are true and exist in real life are property, marine fire and life insurance all applying to different situations.
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Question 5 of 30
5. Question
When do you consider reinsurance helps insurers some of the answers you are given below?
I. Address lack of experience available to price risks.
II. Improve return on equity.
III. Manage fluctuations in earnings.
IV. Refine underwriting skills.Correct
Incorrect
Reinsurance helps insurers with aspects such as refine underwriting skills, manage fluctuations in earnings, improve return on equity and address lack of experience available to price risks.
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Question 6 of 30
6. Question
Which of the statement from the solutions offered about prudent insurers do you consider to be true?
Correct
Incorrect
The solutions offered about prudent insurers most of the time will avoid over-exposure on any risk.
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Question 7 of 30
7. Question
What do you consider that solvency margin is, considering some of the options given?
Correct
Incorrect
Just to summarize in a couple of words, solvency margin is that amount by which assets must exceed liabilities.
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Question 8 of 30
8. Question
Which of the following can best describe in just a few words what reinsurance is?
Correct
Incorrect
Reinsurance is used in situations someone wants to minimize a certain risk.
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Question 9 of 30
9. Question
How is the retention of the primary insurer in an excess of loss arrangement called?
Correct
Incorrect
The retention of the primary insurer in an excess of loss arrangement is called deductable.
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Question 10 of 30
10. Question
Considering the purpose of reinsurance in general, which of the below you can say is true about it?
Correct
Incorrect
The purpose of reinsurance is to help rules be applied correctly.
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Question 11 of 30
11. Question
How does the retail insurance process differentiate itself from the reinsurance taken the points offered to this question?
I. Retail insurance assumes risk from the consumer.
II. Retail insurance collects premiums from the consumer for providing protection.
III. Retail insurance pays a consumer (policyholder) for a claim.
IV. Retail insurance incurs expenses.Correct
Incorrect
Retail insurance process differs from the reinsurance through the risk from the consumer, the collection premiums from the consumer for providing protection, the consumer (policyholder) for a claim and incurs expenses.
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Question 12 of 30
12. Question
Which of the following does the traditional risk-sharing cover by definition?
I. Transfer mortality/morbidity risk.
II. Transfer lapse or surrender risk.
III. Transfer investment risk.
IV. Limit catastrophe risk.Correct
Incorrect
The traditional risk-sharing by definition covers the following: transfer mortality/morbidity risk, transfer lapse or surrender risk. , transfer investment risk and limit catastrophe risk.
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Question 13 of 30
13. Question
Which are advantages of the financial management for businesses in the circumstances of using this process?
I. It covers the costs of increasing new business.
II. Financial management helps in financing acquisitions.
III. It can manage the surplus and/or risk-based capital.
IV. The financial management is useful for planning tax planning.Correct
Incorrect
The advantages of the financial management for businesses in any situation refers to the cost of a new business, financial management and the surplus of the risk-based capital.
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Question 14 of 30
14. Question
Which are some of the parts of the reinsurer liability, by definition considering the options given?
I. Automatic reinsurance is used as part of the process of reinsurer liability.
I. The reinsurer is bound if policy satisfies general conditions.
II. Reinsurer must underwrite each risk to be bound.
III. Reinsurer continues to reinsure life through changes in policies.Correct
Incorrect
The parts of the reinsurer liability are used as part of the process of reinsurer liability, the reinsurer is bound if policy satisfies general conditions, reinsurer must underwrite each risk to be bound and continues to reinsure life through changes in policies.
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Question 15 of 30
15. Question
Which by definition can be considered a true statement about the loss portfolio transfers?
Correct
Incorrect
The loss portfolio transfers, in short, is a reinsurance treaty. It allows insurers to remove liabilities from their balance sheets and to transfer risk.
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Question 16 of 30
16. Question
What does the ceded reinsurance leverage help the insurers and the companies by definition to do?
Correct
Incorrect
The ceded reinsurance leverage help the insurers and the companies by definition to reduce their exposure to a potential surge in claims by shifting some of the obligations to another company.
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Question 17 of 30
17. Question
What are the types of recoverable amounts or cash offsets to paid claims?
I. Salvage and subrogation.
II. Ceded reinsurance.
III. Deductibles.
IV. Indictable.Correct
Incorrect
The types of recoverable amounts or cash offsets to paid claims are salvage and subrogation, ceded reinsurance and deductibles.
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Question 18 of 30
18. Question
Which are the principal functions of reinsurance considering the options given?
I. Facilitate withdrawal from a market segment.
II. Provide catastrophe protection.
III. Provide underwriting guidance.
IV. Provide surplus relief.Correct
Incorrect
The principal functions of reinsurance are to provide surplus relief, underwriting guidance, protection in case of catastrophes and facilitate withdrawal from a market segment.
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Question 19 of 30
19. Question
In which conditions the stabilization of loss experience can be utilized?
Correct
Incorrect
The stabilization of loss experience can be utilized when someone wants to prevent spikes in loss results from year to year.
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Question 20 of 30
20. Question
Which are the methods the reinsurance can be purchased, which are the main sources?
I. Professional reinsurers.
II. Reinsurance departments of primary insurers.
III. Reinsurance pools, syndicates, and associations.
IV. Any intermediary of the reinsurer.Correct
Incorrect
The main sources the reinsurance can be purchased are through professional sellers, departments of insurers and polls syndicates and associations.
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Question 21 of 30
21. Question
Which of the following can be considered as valid types being part of Pro Rata?
I. Quota share reinsurance.
II. Surplus share reinsurance.
III. Excess of loss reinsurance.
IV. Extra deposit for the reinsurance.Correct
Incorrect
The types of reinsurance part of the Pro Rata are quota share, surplus share and excess of loss.
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Question 22 of 30
22. Question
What other alternatives to traditional reinsurance are true from the list given?
I. Catastrophe option.
II. Line of credit.
III. Sidecar.
IV. Industry loss warranty (ILW).Correct
Incorrect
Some others know traditional reinsurance are the catastrophe, line of credit and sidecar.
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Question 23 of 30
23. Question
What are the factors most of the time affecting reinsurance needs?
I. Insurer size.
II. Insurer structure.
III. Senior management’s risk tolerance.
IV. The geographic spread of loss exposure.Correct
Incorrect
The reinsurance needs are affected by factors such as size, structure, the spread of loss exposure and the risk of tolerance.
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Question 24 of 30
24. Question
What is the maximum amount the primary insurer can retain in any given circumstances?
Correct
Incorrect
The maximum amount the primary insurer can retain in any circumstances is the financial strength.
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Question 25 of 30
25. Question
Which are the considerations for coinsurance premiums and allowances considering the variants that are given?
I. Coinsurance usually varies by class, issue age or by gender.
II. A ceding company often keeps a policy fee.
III. Experience rating may be used, but is not common.
IV. Banding.Correct
Incorrect
The considerations for coinsurance premiums and allowances refer to class, age, gender, the policy fee, rating and banding.
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Question 26 of 30
26. Question
Which are some other aspects of considerations for coinsurance considering the provided answers?
I. Reinsurer often exempt from an explicit premium tax charge.
II. Nonforfeiture benefits reinsurer must continue coverage.
III. Reserve credit used if the reinsurer is accredited.
IV. Reinsurer doesn’t participate in policy loans.Correct
Incorrect
The aspects of considerations for coinsurance refers to all the answers provided as a valid ones.
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Question 27 of 30
27. Question
What is needed for reinsurance in order for it to get accredited in a particular state?
I. File evidence of its submission to state’s jurisdiction.
II. Submit to state’s examination of books and records.
III. Be licensed in at least one state.
IV. File its annual statement and copy of the most recent audited statement.Correct
Incorrect
In order for an reinsurance to get accredited in a state, it needs file evidence of its submissions, the records and finally its annual statement and copy of the most recent audited statement.
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Question 28 of 30
28. Question
Which of the below is part of the regulations for assumption reinsurance rules?
I. Insurance department may override objections.
II. The assumption must be approved by the commission.
III. Additional rules for unauthorized, foreign, or alien companies.
IV. Assumption reinsurance requires the approval of policyholder and insurer.Correct
Incorrect
Part of the regulations for assumption reinsurance rules is the reinsurance which requires the approval of policyholder and also the insurer. Above this, the assumption must be approved by the commission, etc.
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Question 29 of 30
29. Question
Which are some of the most reliable sources through which reinsurance can be purchased, in general?
I. Professional reinsurers.
II. Reinsurance departments of primary insurers.
III. Reinsurance pools, syndicates, and associations.
IV. Any kind of reinsurers resellers.Correct
Incorrect
The reinsurance can be bought from professional sellers which are accredited to do this, reinsurance departments or polls, syndicates and associations.
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Question 30 of 30
30. Question
Which of the below do you consider that is true about the aggregate excess of loss reinsurance?
Correct
Incorrect
The aggregate excess of loss reinsurance agrees to a certain amount of money, which indemnifies the reinsured person against the overcome a certain amount spent.