Question

How is capacity measured for an insurer?

a.

By its financial reserves

b.

By its market share

c.

By its underwriting expertise

d.

By its capability to accept risk

Posted under IC85 Reinsurance Management

Answer: (d).By its capability to accept risk Explanation:Capacity is a measure of an insurer's capability to accept a level of risk as proposed. It indicates the insurer's readiness to assume insurance or reinsurance business.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How is capacity measured for an insurer?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does the provision of cash loss in proportional contracts allow the reinsured to do?

View solution

Q. What does catastrophe reinsurance provide coverage for?

View solution

Q. What is another term used to refer to the reinsured or ceding insurer?

View solution

Q. What does the term "cede" refer to in the context of reinsurance?

View solution

Q. What does the term "cede" refer to in the context of reinsurance?What is the key feature of a claims made basis in insurance or reinsurance contracts?

View solution

Q. What is the purpose of the closing particular in reinsurance?

View solution

Q. What does the term "commission" refer to in insurance and reinsurance?

View solution

Q. What does the ceding commission in reinsurance include?

View solution

Q. What does the term "overriding commission" typically refer to in reinsurance?

View solution

Q. What is the purpose of a commutation clause in reinsurance?

View solution

Q. What does a cover note indicate in the context of reinsurance?

View solution

Q. What does a cut-through clause allow in the event of the reinsured's insolvency?

View solution

Q. What is a deposit premium in reinsurance?

View solution

Q. What is direct written premium in insurance or reinsurance?

View solution

Q. What does earned premium represent in insurance or reinsurance?

View solution

Q. What is the purpose of excess of loss reinsurance?

View solution

Q. What happens at the expiration of an insurance policy?

View solution

Q. What is facultative reinsurance?

View solution

Q. What is a facultative treaty in reinsurance?

View solution

Q. What does a flat rate refer to in reinsurance?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Sociology

Gain insights into human behavior and society with our Sociology category. Explore...