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 7 of 7

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Q61.
The basic statistics relating to a treaty are collated from _____________ as sent and received.

a.

Bank statements

b.

Financial statements

c.

Account statements

d.

Actuarial data

Discuss
Answer: (c).Account statements Explanation:The basic statistics relating to a treaty are collated from "account statements" as sent and received. Account statements contain financial information and transaction details related to the treaty. These statements provide the necessary data for assessing the performance and results of the treaty.
Q62.
While preparing summary sheet in the case of reciprocal exchange, which of the following information is not included?

a.

Adequacy of rate

b.

Commissions

c.

Incurred claims

d.

Net results

Discuss
Answer: (a).Adequacy of rate Explanation:In the case of reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing cessions on one side and matching acceptances on the other side. The purpose of this summary sheet is to present a concise overview of the business exchanged. While the summary sheet may include information such as commissions, incurred claims, and net results.
Q63.
The magnitude of an earthquake is measured on the ______________.

a.

Richter scale

b.

Beufort scale

c.

Moment magnitude scale

d.

Modified magnitude scale

Discuss
Answer: (a).Richter scale Explanation:The magnitude of an earthquake is measured on the Richter scale. The Richter scale is a logarithmic scale used to quantify the energy released by an earthquake. It measures the amplitude of seismic waves recorded by seismographs.
Q64.
Which of the following is an example of a ‘high risk’ area due to frequent occurrence of bush fires?

a.

The USA

b.

Europe

c.

Japan

d.

Australia

Discuss
Answer: (d).Australia Explanation:A 'high risk' area due to the frequent occurrence of bush fires is Australia. This means that Australia is more prone to bush fires compared to the other options. While bush fires can occur in other regions as well, Australia is particularly known for its susceptibility to such fires.
Q65.
Which of the following regions are highly exposed to earthquakes?

a.

West Coast of U.S.A., Central America, Caribbean Islands, West Coast of South America

b.

Southern Europe: Italy, Spain, Yugoslavia, Romania, Greece, Turkey

c.

North Africa: Morocco, Algeria, Tunisia

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Regions highly exposed to earthquakes include the West Coast of U.S.A., Central America, Caribbean Islands, West Coast of South America; Southern Europe, including Italy, Spain, Yugoslavia, Romania, Greece, Turkey; and North Africa, including Morocco, Algeria, Tunisia. These regions are prone to seismic activities and require careful consideration in underwriting and managing risks associated with earthquakes.
Q66.
How can underwriters determine the zones that may be affected by earthquake damage?

a.

By referring to seismic maps

b.

By analyzing historical earthquake data

c.

By consulting with local authorities

d.

By conducting on-site inspections

Discuss
Answer: (a).By referring to seismic maps Explanation:Underwriters can determine the zones that may be affected by earthquake damage by referring to seismic maps. Seismic maps provide valuable information about the seismic activity and potential risks in different areas. By studying these maps, underwriters can identify the zones that require special attention in terms of underwriting and risk management.
Q67.
What is the purpose of maintaining accumulation control sheets?

a.

To assess the total liabilities in each zone

b.

To track changes in liabilities under various acceptances

c.

To arrange suitable catastrophe protection for existing commitments

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The purpose of maintaining accumulation control sheets is to assess the total liabilities in each zone, track changes in liabilities under various acceptances, and arrange suitable catastrophe protection for existing commitments. These sheets provide an overview of the underwriter's liabilities, allowing for better control and management of risks associated with catastrophic perils.
Q68.
Which regions are prone to volcanic eruptions?

a.

Japan, Indonesia, Philippines

b.

Italy, New Zealand, Caribbean

c.

South America, Australia, Fiji

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Regions prone to volcanic eruptions include Japan, Indonesia, Philippines, Italy, New Zealand, Caribbean, South America, Australia, and Fiji. These regions experience volcanic activity and are susceptible to associated risks. Underwriters need to consider these risks when assessing and managing reinsurance commitments.
Q69.
What approach should underwriters take to accumulations arising from catastrophic perils?

a.

Maintain exhaustive control on each peril

b.

Modify the underwriting policy based on the dangers involved

c.

Ignore accumulations and focus on individual risks

d.

Seek external assistance to manage accumulations

Discuss
Answer: (b).Modify the underwriting policy based on the dangers involved Explanation:Underwriters should modify their underwriting policy based on the dangers involved in accumulations arising from catastrophic perils. While maintaining exhaustive control on each peril may not be practicable, underwriters need to be aware of the risks associated with accumulations and adjust their underwriting approach accordingly. This ensures appropriate risk management and mitigation strategies are in place.
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