Reinsurance Markets MCQs

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

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Reinsurance Markets MCQs | Page 7 of 10

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Q61.
Which of the following principles govern Lloyd's operations in China?

a.

Long-term strategic investment

b.

Transfer of underwriting expertise and technology

c.

Profit-driven underwriting

d.

All of the above

Discuss
Answer: (a).Long-term strategic investment Explanation:The five governing principles for Lloyd's in China include long-term strategic investment, transfer of underwriting expertise and technology, profit-driven underwriting, full access to the Lloyd's Chain of Security, and striving to develop China's insurance broker market.
Q62.
What is the purpose of the planned exchange in New York based on the Lloyd's of London model?

a.

To expand Lloyd's presence in the US market

b.

To introduce technological advances to Lloyd's operations

c.

To enhance contract certainty and claims handling

d.

To provide standardised forms for insurance contracts

Discuss
Answer: (c).To enhance contract certainty and claims handling Explanation:The planned exchange in New York, based on the Lloyd's of London model, aims to have an advanced technology platform, standardised forms, and expeditious claims handling to improve contract certainty and claims processes.
Q63.
____________ are the largest insurers of private motor vehicles in the UK.

a.

UK motor’s underwriters

b.

Lloyd’s motor underwriters

c.

LRCCL

d.

GIC Re

Discuss
Answer: (b).Lloyd’s motor underwriters Explanation:Lloyd's motor underwriters are the largest insurers of private motor vehicles in the UK.
Q64.
Local pools are established to minimize the need for reinsurance outside of a specific market. What is the main purpose of these pools?

a.

To maximize profitability

b.

To provide support for high-risk perils

c.

To handle undesirable or hazardous business

d.

To compete with leading reinsurance organizations

Discuss
Answer: (c).To handle undesirable or hazardous business Explanation:Local pools are established to fill a specific need, particularly for business that may be too undesirable or hazardous for the market to handle in a normal competitive way.
Q65.
Which organization manages the F.A.I.R Non-Life Reinsurance Pool?

a.

Lloyd's of London

b.

Federation of Afro-Asian Insurers & Reinsurers (F . A . I . R .)

c.

Millî Reasürans T. A .Ş. Istanbul

d.

Kingdom of Bahrain

Discuss
Answer: (c).Millî Reasürans T. A .Ş. Istanbul Explanation:Millî Reasürans T.A.Ş. Istanbul is entrusted with the management of the F.A.I.R. Reinsurance Pool since its establishment.
Q66.
Internationally, specialist pools operate to provide insurance for which of the following perils?

a.

Terrorism

b.

Natural disasters

c.

Financial risks

d.

Cybersecurity threats

Discuss
Answer: (a).Terrorism Explanation:Internationally specialist pools operate to assist in terrorism, war, and nuclear risks.
Q67.
What is one advantage of pools for smaller companies with limited reinsurance expertise?

a.

Greater control over the constitution of the business

b.

Access to underwriting agencies

c.

Maximized profitability

d.

Exposure to high-risk perils

Discuss
Answer: (b).Access to underwriting agencies Explanation:That pools accessible through intermediaries and underwriting agencies may be attractive for smaller companies with little or no reinsurance expertise of their own. This suggests that smaller companies can benefit from access to underwriting agencies through pools.
Q68.
Which organization set up the F .A .I .R Non-Life Reinsurance Pool?

a.

Lloyd's of London

b.

Federation of Afro-Asian Insurers & Reinsurers (F .A .I .R .)

c.

Millî Reasürans T .A .Ş. Istanbul

d.

Kingdom of Bahrain

Discuss
Answer: (b).Federation of Afro-Asian Insurers & Reinsurers (F .A .I .R .) Explanation:The F.A.I.R Non-Life Reinsurance Pool was set up by the Federation of Afro-Asian Insurers & Reinsurers (F.A.I.R.).
Q69.
Which organization set up the F .A .I .R Non-Life Reinsurance Pool?What is the main objective of the F .A .I .R. Reinsurance Pool?

a.

Lloyd's of LondonTo maximize profitability for its members

b.

Federation of Afro-Asian Insurers & Reinsurers (F .A .I .R .)To provide support for oil and energy businesses

c.

Millî Reasürans T .A .Ş. IstanbulTo accept reinsurance and retrocession business from African and Asian markets

d.

Kingdom of BahrainTo ensure 100% reciprocity for ceded premiums

Discuss
Answer: (b).Federation of Afro-Asian Insurers & Reinsurers (F .A .I .R .)To accept reinsurance and retrocession business from African and Asian markets Explanation:The F.A.I.R Non-Life Reinsurance Pool was set up by the Federation of Afro-Asian Insurers & Reinsurers (F.A.I.R.).The principal objective of the F.A.I.R. Reinsurance Pool is to accept reinsurance and retrocession business from the African and Asian markets.
Q70.
Which perils do internationally specialist pools assist in?

a.

Natural disasters

b.

Financial risks

c.

Nuclear risks

d.

Cybersecurity threats

Discuss
Answer: (c).Nuclear risks Explanation:Internationally specialist pools operate to assist in terrorism, war, and nuclear risks.
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