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 3 of 7

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Q21.
What is the term used to describe the process of electronically settling statements and making online payments?

a.

Web-based integration

b.

Electronic funds transfer

c.

Digital transactions

d.

EDI settlements

Discuss
Answer: (d).EDI settlements Explanation:Statements rendered for confirmation to settle are followed up by EDI settlements and through online payments.
Q22.
According to Bill Gates, what term is used to describe a system where everyone has access to data that enriches their job and performance?

a.

Digital connectivity

b.

Real-time availability

c.

Digital Nervous System

d.

Communication network

Discuss
Answer: (c).Digital Nervous System Explanation:Bill Gates called the system where everyone has access to data that enriches their job and performance the "Digital Nervous System."
Q23.
How does the availability of real-time data impact performance and growth?

a.

It enhances accuracy and reliability of data.

b.

It streamlines processes and improves efficiency.

c.

It enables quick decision-making and problem-solving.

d.

All of the above.

Discuss
Answer: (d).All of the above. Explanation:The real-time availability of data is a powerful catalyst to performance and growth as it enhances accuracy and reliability of data, streamlines processes, and enables quick decision-making and problem-solving.
Q24.
An organization can internally connect all its executives and offices through a private internet arrangement. What term is used for such arrangement?

a.

Internet

b.

Intranet

c.

Extranet

d.

World wide web

Discuss
Answer: (b).Intranet Explanation:An organization can internally connect all its executives and offices through a private internet arrangement called an "intranet." Unlike the public internet, access to an intranet is restricted to authorized users within the organization.
Q25.
Which of the following is NOT a component of the organization of a reinsurance department?

a.

Underwriting

b.

Accounting

c.

Systems

d.

Publicity

Discuss
Answer: (c).Systems Explanation:The organization of a reinsurance department includes components such as underwriting, accounting, department administration, and information, research, and statistics.
Q26.
How does an accurate and efficient information system benefit the primary insurer in reinsurance business?What is the purpose of maintaining accurate statistics in reinsurance business?

a.

It increases credibility of the primary insurerTo determine the portion of policy/ies ceded to each surplus share reinsurer

b.

It helps in calculating reinsurance premiumsTo identify risks included in the treaty but not ceded for preserving profitability

c.

It ensures timely availability of outstanding claims provisionsTo exclude risks underwritten by the primary insurer from the reinsurance bordereau

d.

It facilitates inspection of books of account by reinsurersTo periodically monitor the performance of each reinsurance arrangement

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.
Q27.
How does an accurate and efficient information system benefit the primary insurer in reinsurance business?

a.

It increases credibility of the primary insurer

b.

It helps in calculating reinsurance premiums

c.

It ensures timely availability of outstanding claims provisions

d.

It facilitates inspection of books of account by reinsurers

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.
Q28.
What information must the primary insurer make available for inspection by the reinsurer?

a.

Direct premium data

b.

Books of account

c.

Treaty limits and excess retentions

d.

Codes for catastrophe losses

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.
Q29.
What types of reinsurance statistics are required for effective control?

a.

Treaty wise quarterly statistics

b.

Insurer wise statistics

c.

Class of business statistics

d.

All of the above

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.
Q30.
When should a major review of acceptances in a treaty be conducted?

a.

Every month

b.

Every quarter

c.

At least once a year

d.

As per the notice period

Discuss
Answer: (c).At least once a year Explanation:A major review of acceptances in a treaty should be conducted at least once a year. This review is an important part of the duties of executives in charge of underwriting and administration. It helps ensure the accuracy and effectiveness of the treaty and allows for necessary adjustments or actions to be taken.
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