Q. Besides increasing the fund and capital, what other means of strengthening owned capital do insurance companies often use with the approval of the Regulator?

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Q. Which of the following is NOT a variant of financial reinsurance?

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Q. What is the purpose of a "time and distance" policy in reinsurance?

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Q. How does the spread loss reinsurance contract protect the insurer?

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Q. Which country precludes the use of spread loss reinsurance?

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Q. What is the purpose of a loss portfolio transfer in reinsurance?

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Q. What percentage of the ceded loss portfolio is typically assumed by reinsurers in a loss portfolio transfer?

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Q. What is the main effect of a loss portfolio transfer on the insurer's balance sheet?

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Q. In which of the following countries did the Risk Retention Group originate?

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Q. What is a derivative security?

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Q. What are the main forms of derivatives?

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Q. What is the purpose of futures and forwards in derivative trading?

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Q. In options trading, what is a call option?

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Q. What is the main characteristic of a swap in derivative trading?

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Q. What is an example of a swap?

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Q. What is the purpose of derivatives in risk management?

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Q. Which exchange started trading insurance futures contracts following Hurricane Andrew?

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Q. What is the main characteristic of a futures contract?

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Q. What is "basis risk" in the context of insurance derivatives?

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Q. In which sectors are weather derivatives particularly relevant?

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