Processing Information for Reinsurance Decisions MCQs

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

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Processing Information for Reinsurance Decisions MCQs | Page 2 of 7

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Discuss
Answer: (a).Feasibility studies, tendering, and user acceptance Explanation:The procedures involved in implementing an EDP system is, starting from an initial corporate decision to investigate the need for a new system and going through feasibility studies, tendering, outline and detail systems design, programming, testing, and user acceptance.
Discuss
Answer: (c).Service provided by the EDP system and its timing Explanation:The Reinsurance Manager is concerned with the service that the EDP system provides, the assistance it offers in functioning more efficiently, and the timing of the service.
Discuss
Answer: (b).Faster communication and data sharing Explanation:Using a PC to turn out files and sending them via email facilitates efficient communication, data sharing, and data storage. Complex data on risk proposals can be transmitted within seconds anywhere in the world and complete transactions with overseas contacts within the space of hours.
Q14.
What does networking with a mainframe and hardware arrangements like hubs and routers enable?
Discuss
Answer: (b).Access to process data and data transfers Explanation:Networking with a mainframe and hardware arrangements like hubs and routers enable access to process data and data transfers in reinsurance.
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Answer: (c).To monitor the performance of each reinsurance arrangement Explanation:Submitting statistics relating to reinsurance transactions to the regulatory authority allows for the monitoring of the performance of each reinsurance arrangement. It helps in assessing the effectiveness and profitability of the reinsurance business and enables remedial action to be taken when necessary.
Discuss
Answer: (b).Data for individual losses Explanation:Data for individual losses is needed to apply treaty limits and excess retentions. This data helps in determining the amount of risk retained by the primary insurer and the portion that is ceded to the reinsurer.
Discuss
Answer: (b).It increases credibility of the primary insurerTo periodically monitor the performance of each reinsurance arrangement Explanation:An accurate and efficient information system helps in increasing the credibility of the primary insurer. It provides reliable data and information, which enhances the trust and confidence of reinsurers. This, in turn, improves the chances of successful treaty renewals.Maintaining accurate statistics in reinsurance business allows for the periodic monitoring of the performance of each reinsurance arrangement. It helps in evaluating the effectiveness and profitability of the arrangements and enables remedial action to be taken if needed.
Discuss
Answer: (a).It increases credibility of the primary insurer Explanation:An accurate and efficient information system helps in increasing the credibility of the primary insurer. It provides reliable data and information, which enhances the trust and confidence of reinsurers. This, in turn, improves the chances of successful treaty renewals.
Q19.
What information must the primary insurer make available for inspection by the reinsurer?
Discuss
Answer: (b).Books of account Explanation:The primary insurer must make available its books of account for inspection by the reinsurer. This is important for ensuring transparency and providing the reinsurer with access to relevant financial information related to reinsurance transactions.
Q20.
What types of reinsurance statistics are required for effective control?
Discuss
Answer: (d).All of the above Explanation:Effective control in reinsurance requires various types of statistics, including treaty wise quarterly statistics, insurer wise statistics, and class of business statistics. These statistics provide valuable insights and allow for proper monitoring and evaluation of reinsurance activities.
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