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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Introduction. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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Introduction MCQs | Page 9 of 13

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Q81.
Who is the designated manager for the Natural Catastrophe Pool and Nuclear Risks Liability Pool?

a.

IRDA

b.

SEBI

c.

NABARD

d.

GIC Re

Discuss
Answer: (d).GIC Re Explanation:GIC Re is designated manager for the above pools also.
Q82.
What is GIC Re's responsibility for the natural catastrophe pool and nuclear risks liability pool?

a.

To manage and administer both pools

b.

To provide reinsurance support for both pools

c.

To establish both pools

d.

None of the above

Discuss
Answer: (a).To manage and administer both pools Explanation:GIC Re is designated manager for both the Natural Catastrophe Pool and Nuclear Risks Liability Pool, under the direction of the Government of India.
Q83.
What is the obligatory cession that GIC Re receives from all general insurers?

a.

5%

b.

10%

c.

15%

d.

20%

Discuss
Answer: (a).5% Explanation:As per regulations, GIC Re receives 5% obligatory (statutory) cession from all general insurers on all classes of business underwritten by them.
Q84.
What is the percentage of terrorism risk that is ceded to the Market Pool?

a.

100%

b.

50%

c.

75%

d.

25%

Discuss
Answer: (a).100% Explanation:In respect of terrorism risk all 100% is ceded to the Market Pool and there is no obligatory cession.
Q85.
What is the role of IRDA's notification in ceding commission?

a.

Sets out minimum ceding commission with any higher percentage left to be mutually agreed between the insurer and GIC Re.

b.

Sets out maximum ceding commission with any lower percentage left to be mutually agreed between the insurer and GIC Re.

c.

Sets out fixed ceding commission to be paid to GIC Re by all insurers.

d.

None of the above

Discuss
Answer: (a).Sets out minimum ceding commission with any higher percentage left to be mutually agreed between the insurer and GIC Re. Explanation:IRDA’s notification sets out minimum ceding commission with any higher percentage left to be mutually agreed between the insurer and GIC Re.
Q86.
What kind of reinsurance does GIC Re provide?

a.

Composite and life reinsurance

b.

Composite and motor reinsurance

c.

Life and health reinsurance

d.

Health and motor reinsurance

Discuss
Answer: (a).Composite and life reinsurance Explanation:GIC Re is a composite reinsurer and also handles life reinsurance.
Q87.
What is the objective of regional reinsurance corporations like Asian Reinsurance Corporation?

a.

To reduce the drain on foreign exchange resources resulting from the reinsurances of local companies being ceded to foreign companies and to promote local expertise.

b.

To promote foreign exchange resources resulting from the reinsurances of local companies being ceded to foreign companies and to promote international expertise.

c.

To reduce the drain on local exchange resources resulting from the reinsurances of foreign companies being ceded to local companies and to promote local expertise.

d.

To promote local exchange resources resulting from the reinsurances of foreign companies being ceded to local companies and to promote international expertise.

Discuss
Answer: (a).To reduce the drain on foreign exchange resources resulting from the reinsurances of local companies being ceded to foreign companies and to promote local expertise. Explanation:The objective of regional reinsurance corporations is to endeavour to reduce the drain on foreign exchange resources resulting from the reinsurances of local companies being ceded to foreign companies and to promote local expertise.
Q88.
Which of the following companies became Indian reinsurer after nationalisation?

a.

GIC

b.

National Insurance Co. Ltd

c.

The New India Assurance Co Ltd

d.

The Oriental Fire and General Insurance Co. Ltd.

Discuss
Answer: (a).GIC Explanation:After nationalisation in 1972, GIC became the Indian reinsurer. The other options, National Insurance Co. Ltd, The New India Assurance Co Ltd, and The Oriental Fire and General Insurance Co. Ltd. are all general insurance companies that were nationalised along with GIC.
Q89.
What are the key objectives of an insurer in arranging reinsurance?

a.

Increasing capacity to handle larger risks

b.

Enhancing ability to accept larger lines than his capital allows

c.

Stabilising his operating results from year to year

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The key objectives of an insurer in arranging reinsurance are to increase capacity to handle larger risks, enhance the ability to accept larger lines than his capital allows, and stabilise operating results from year to year with the reinsurer absorbing larger claims or catastrophe losses.
Q90.
What is the concept of co-insurance?

a.

An insurer shares direct responsibility for a risk with one or more insurers participating as co-insurers

b.

An insurer buys a policy from another insurer to cover a specific risk

c.

An insurer shares profits with the reinsurer

d.

An insurer transfers all responsibility for a risk to the reinsurer

Discuss
Answer: (a).An insurer shares direct responsibility for a risk with one or more insurers participating as co-insurers Explanation:Co-insurance is the concept whereby one insurer shares direct responsibility for a risk with one or more insurers participating as co-insurers, each insurer's responsibility being restricted to the amount he underwrites on the original policy.
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