Methods of Reinsurance II MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Methods of Reinsurance II, 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 Methods of Reinsurance II 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 Methods of Reinsurance II mcq questions that explore various aspects of Methods of Reinsurance II problems. Each MCQ is crafted to challenge your understanding of Methods of Reinsurance II 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 Methods of Reinsurance II MCQs are your pathway to success in mastering this essential IC85 Reinsurance Management topic.

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Q71.
What is the time zone used for a catastrophe treaty?

a.

Standard time

b.

Time zone of the reinsured

c.

Time zone of the reinsurer

d.

None of the above

Discuss
Answer: (b).Time zone of the reinsured Explanation:For catastrophe treaty use time zone of reinsured.
Q72.
What are the method/s for determining which claims fall within the scope of the excess of loss cover?

a.

“Losses occurring” basis and

b.

“Risk attaching” basis.

c.

Both a and b

d.

None of the above

Discuss
Answer: (a).“Losses occurring” basis and Explanation:The two methods for determining which claims fall within the scope of the excess of loss cover are the “losses occurring” basis and the “risk attaching” basis.
Q73.
Under the “losses occurring” basis, are losses occurring within the contract period covered, no matter when the original policy was issued?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't say

Discuss
Answer: (a).Yes Explanation:Under the “losses occurring” basis, all losses occurring within the contract period are covered, no matter when the original policy was issued.
Q74.
Is the present reinsurer relieved of liability if the original policy was issued before the inception date of the present contract, and while another excess of loss treaty was in force?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't say

Discuss
Answer: (b).No Explanation:The fact that the original policy was issued before the inception date of the present contract, and while another excess of loss treaty was in force does not relieve the present reinsurer of liability.
Q75.
Under the “losses occurring” basis, is the reinsurer liable for losses occurring after the contract ends, although the original policy may remain in force?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't say

Discuss
Answer: (b).No Explanation:At termination, the reinsurer is not liable for losses occurring after the contract ends, although the original policy may remain in force.
Q76.
What is the merit of the “losses occurring” basis?

a.

Its complexity

b.

Its portfolio

c.

Its simplicity

d.

Its withdrawal

Discuss
Answer: (c).Its simplicity Explanation:The merit of the “losses occurring” basis is its simplicity. Each contract year is self-contained, there is no portfolio taken over at inception, no portfolio withdrawn at cancellation, and no checking when a claim occurs to see when the policy was issued and what contract was affected.
Q77.
What are the two methods used for determining which claim falls within the scope of the excess of loss cover?

a.

Loss occurring basis

b.

Risk attaching basis

c.

both a and b

d.

None of the above

Discuss
Answer: (c).both a and b Explanation:The two methods used for determining which claim falls within the scope of the excess of loss cover are the "loss occurring" basis and the "risk attaching" basis.
Q78.
What is the "loss occurring" basis used for in excess of loss contracts?

a.

To determine which claims are covered, no matter when the original policy was issued.

b.

To avoid the hazard of the reinsurer canceling a contract and leaving the insurer without cover for the duration of the policies.

c.

To assign a claim to the proper excess of loss contract year.

d.

None of the above

Discuss
Answer: (a).To determine which claims are covered, no matter when the original policy was issued. Explanation:The "loss occurring" basis is used to determine which claims are covered, no matter when the original policy was issued.
Q79.
What is the "risk attaching" basis used for in excess of loss contracts?

a.

To determine which claims are covered, no matter when the original policy was issued.

b.

To avoid the hazard of the reinsurer canceling a contract and leaving the insurer without cover for the duration of the policies.

c.

To assign a claim to the proper excess of loss contract year.

d.

None of the above

Discuss
Answer: (b).To avoid the hazard of the reinsurer canceling a contract and leaving the insurer without cover for the duration of the policies. Explanation:The "risk attaching" basis is used to avoid the hazard of the reinsurer canceling a contract and leaving the insurer without cover for the duration of the policies.
Q80.
Under which basis do claims under policies issued or renewed during the contract period are covered no matter in which year they may occur?

a.

Loss occurring basis

b.

Risk attaching basis

c.

both a and b

d.

None of the above

Discuss
Answer: (b).Risk attaching basis Explanation:Claims under policies issued or renewed during the contract period are covered no matter in which year they may occur under the "risk attaching" basis.
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