Introduction MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Introduction, a fundamental topic in the field of IC85 Reinsurance Management. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Introduction MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Introduction mcq questions that explore various aspects of Introduction problems. Each MCQ is crafted to challenge your understanding of Introduction principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC85 Reinsurance Management tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Introduction MCQs are your pathway to success in mastering this essential IC85 Reinsurance Management topic.

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Introduction MCQs | Page 7 of 13

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Q61.
What was the attractive capacity offered by SWIFT on the sum insured basis?

a.

US $5 million

b.

US $2 million

c.

US $10 million

d.

US $20 million

Discuss
Answer: (a).US $5 million Explanation:SWIFT offered an attractive capacity of US $5 million on sum insured basis.
Q62.
Which security rating agency gave SWIFT an "A" rating?

a.

Moody's

b.

Standard and Poor

c.

Fitch Ratings

d.

A .M . Best

Discuss
Answer: (b).Standard and Poor Explanation:SWIFT was an 'A' rated security by Standard and Poor.
Q63.
Who is vested with the authority of regulating and controlling the conduct of insurance business in India?

a.

General Insurance Corporation of India ( GIC )

b.

Insurance Regulatory & Development Authority ( IRDA )

c.

National Insurance Co. Ltd .

d.

The New India Assurance Co. Ltd .

Discuss
Answer: (b).Insurance Regulatory & Development Authority ( IRDA ) Explanation:The Insurance Regulatory & Development Authority (IRDA) is vested with the authority of regulating and controlling the conduct of insurance business in India.
Q64.
What is one of the key goals of regulations for reinsurance after liberalisation?

a.

To increase the number of foreign reinsurers operating in India

b.

To reduce the premium retained in India

c.

To assist the Indian market retain maximum premium prior to reinsuring overseas

d.

To eliminate the need for reinsurance arrangements

Discuss
Answer: (c).To assist the Indian market retain maximum premium prior to reinsuring overseas Explanation:One of the key goals of regulations for reinsurance after liberalisation is to assist the Indian market retain maximum premium prior to reinsuring overseas.
Q65.
Who can define their inward reinsurance underwriting philosophy after liberalisation?

a.

Only General Insurance Corporation of India (GIC)

b.

Only life insurers

c.

Only private insurance companies

d.

Each insurer, including the life insurers

Discuss
Answer: (d).Each insurer, including the life insurers Explanation:Each insurer, including the life insurers, can define their inward reinsurance underwriting philosophy and with due approval of the same from the IRDA write inward reinsurance.
Q66.
What was the main objective of the market Reinsurance Programme after nationalisation?

a.

To increase foreign exchange drain

b.

To maximise aggregate domestic retention

c.

To reduce the premium base of the domestic market

d.

To decrease the use of reinsurance arrangements

Discuss
Answer: (b).To maximise aggregate domestic retention Explanation:The main objectives of the market Reinsurance Programme after nationalisation were to maximise aggregate domestic retention, use the large premium base of the domestic market to secure the best terms, and minimise the drain of foreign exchange.
Q67.
What was the capacity of SWIFT on a Probable Maximum Loss (PML) basis?

a.

US $5 million

b.

US $2 million

c.

US $65 million

d.

None of the above

Discuss
Answer: (b).US $2 million Explanation:SWIFT offered an attractive capacity of US $5 million on sum insured basis and US $2 million on Probable Maximum Loss (PML) basis.
Q68.
What is the role of IRDA in regulating reinsurance in India?

a.

It allows insurers to structure their reinsurance programmes as they please

b.

It approves all reinsurance placements with no one reinsurer rated as per regulations

c.

It frames rules and regulations for various aspects of the insurance business including reinsurance

d.

It provides a source of treaty reinsurance support

Discuss
Answer: (c).It frames rules and regulations for various aspects of the insurance business including reinsurance Explanation:The Insurance Regulatory & Development Authority (IRDA) is vested with the authority of regulating and controlling the conduct of insurance business in India, and frames rules and regulations for various aspects of the insurance business including reinsurance.
Q69.
What is the maximum percentage of all premium ceded overseas that can be received by one reinsurer rated as per regulations?

a.

10%

b.

20%

c.

30%

d.

None of the above

Discuss
Answer: (a).10% Explanation:The reinsurance programme needs to be approved by the IRDA and is subject to monitoring for placements with no one reinsurer rated as per regulations, receiving cessions equal to or not exceeding 10% of all premium ceded overseas, subject to a maximum of 20%.
Q70.
What was the rating of SWIFT security by Standard and Poor?

a.

A-rated

b.

B-rated

c.

C-rated

d.

D-rated

Discuss
Answer: (a).A-rated Explanation:SWIFT was an 'A' rated security by Standard and Poor.
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