Which of the below can be considered a true sentence regarding the reinsurance market?

When is basket retention used in general and why is it useful for considering the variants presented?
I. Basket retention is used when there are significant property and casualty losses from the same occurrence.
II. The Basket retention limits a ceding company’s loss in events involving multiple policies to single retention versus having to pay two retentions.
III. Basket retention could be used but not necessarily when there are significant properties.
IV. The Basket retention limits ceding companies gain in events involving multiple policies to single retention versus having to pay two retentions.

What will prudent insurers do in any given situation considering the options you are given?
I. Will avoid over-exposure in general.
II. Will try to avoid exposure at any risk.
III. Will always only take risks they have experience in.
IV. Only use facultative reinsurance to reinsure business.

Which of the statement from the solutions offered about prudent insurers do you consider to be true?

What do you consider that solvency margin is, considering some of the options given?

What does the assumed reinsurance accounting refer to in general considering the options given to you below?

What is the main difference between the retroactive reinsurance versus the prospective reinsurance?

Based on the “Reinsurance Principles and Practices” by Harrison which are the principal functions of reinsurance?
I. Increase large line capacity.
II. Provide catastrophe protection.
III. Stabilize loss experience.
IV. Provide surplus relief.

Which is one of the first functions of reinsurance by definition from your point of view?

How does reinsurance stabilize the ceding company claim, experience and his account?
I. The claim will represent a request by an insured for an insured event, for covered losses or damages.
II. Stabilize a ceding company’s specific results with claims and experience.
III. Assist the ceding company’s proper and prudent management of its account or balance sheet.
IV. The experience will be the ceding company’s overall history of claims/losses and related reserves.

When withdrawing from a market segment, the primary insurer base some of the options, which are those?
I. Cancel all policies (if regulations permit) and refund the unearned premiums to insure.
II. Stop writing insurance policies and continue in-force insurance without certain expiration limit.
III. Withdraw from the market segment by purchasing portfolio reinsurance.
IV. Stop writing new insurance policies and continue in-force insurance until all policies expire.

Which types related to the excess of loss reinsurance do you think are true?
I. Catastrophe excess of loss.
II. Per policy excess of loss reinsurance.
III. Per occurrence excess of loss reinsurance.
IV. Aggregate excess of loss reinsurance.

How could the aggregate deductible be defined considering the options given down below?

Which from the list below are some unique factors in the insurance market?
I. Market research.
II. Demands for technology.
III. Regulatory controls.
IV. Economic forces.

Which of the below is a true statement when you think about reinsurance in general?

Which are some of the reasons someone should choose using reinsurance?
I. Improves policyholder protection bypassing mortality and other risks (persistency, investment) to the reinsurer.
II. Provides readily available financing for new business in exactly the right amount.
III. Reduces ceding company’s solvency requirements in proportion to risk transfer to a reinsurance company.
IV. Ceding company’s cost of using reinsurer’s capital is tied to the profitability of business ceded.

Which of the statements presented are true regarding the claim adjuster?

Which of the below describes the bank deposit approach in the circumstances of basic insurance accounting?

When would a misrepresentation on the insurance application be considered fraud?
I. Never: statements by the applicant are only representations.
II. When the application is incomplete.
III. If it is material.
IV. If it is intentional.

Which of the following cannot be considered to be a goal of risk retention?
I. To minimize the insured’s level of liability in any given event of a loss.
II. To minimize the insured’s level of liability in the event of a loss.
III. To reduce expenses and to improve cash flow.
IV. To increase control of claim reserving and claims settlements.

Which of the below best describes from your point of view the insurance by definition?

What beneficiary designation has the first claim to the death proceeds of a life insurance policy?

An applicant for life insurance misstated her age on the policy application. How will this affect the death benefit?

Which of the two types of policy assignments requires a transfer of all ownership rights in the policy to a third party?

What are representations of life insurance applications considering the below?

Which dividend option is automatically selected by the company if not chosen by the policy owner?

What life policy rider allows the company to forgo collecting the premium if the insured becomes disables?

What type of beneficiary do you think that is next in line after the primary beneficiary?

What is the consideration on the part of the insurer considering the below options given?

What is the name for a life insurance policy rider that provides coverage on the insured’s family members?