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 9 of 10

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Q81.
What is the role of the Multilateral Investment Guarantee Agency (MIGA)?

a.

Promote foreign direct investment

b.

Provide disaster relief funds

c.

Support poverty alleviation programs

d.

Assist in healthcare initiatives

Discuss
Answer: (a).Promote foreign direct investment Explanation:As a member of the World Bank Group, the Multilateral Investment Guarantee Agency (MIGA) promotes foreign direct investment (FDI) into developing countries.
Q82.
What does MIGA provide to the private sector?

a.

Political risk insurance

b.

Financial grants

c.

Technical assistance

d.

Infrastructure development

Discuss
Answer: (a).Political risk insurance Explanation:MIGA provides political risk insurance (guarantees) to the private sector.
Q83.
What does MIGA do to address concerns about investment environments and political risk?

a.

Provides financial aid to developing countries

b.

Offers dispute resolution services

c.

Supports poverty reduction initiatives

d.

Provides technical assistance to governments

Discuss
Answer: (b).Offers dispute resolution services Explanation:MIGA addresses concerns about investment environments and perceptions of political risk by providing dispute resolution services for guaranteed investments to prevent disruptions to developmentally beneficial projects.
Q84.
F.A. I. R. Stands for _______.

a.

Federation of Afro-Asian Insurer’s and Reinsurers

b.

Federation of Asian-American Insurer’s and Reinsurers

c.

Federation of Afro-Australian Insurer’s and Reinsurers

d.

Federation of Asian-Australian Insurer’s and Reinsurers

Discuss
Answer: (a).Federation of Afro-Asian Insurer’s and Reinsurers Explanation:F.A.I.R stands for the Federation of Afro-Asian Insurer’s and Reinsurers.
Q85.
Reinsurers are often referred to as "the bankers to the insurance industry" because:

a.

They provide financial support to weak insurance companies.

b.

They offer loans to policyholders.

c.

They operate similar to banks in terms of financial transactions.

d.

They invest heavily in the banking sector.

Discuss
Answer: (c).They operate similar to banks in terms of financial transactions. Explanation:Reinsurers are often referred to as "the bankers to the insurance industry" because their services can operate more as a means of finance rather than just a transfer of risk. This implies that their operations resemble those of banks in terms of financial transactions.
Q86.
GIC Re targets inward overseas reinsurance premium in which markets?

a.

Europe and the United States

b.

Middle East, Soviet block, and Far East

c.

Africa and South America

d.

Australia and New Zealand

Discuss
Answer: (b).Middle East, Soviet block, and Far East Explanation:GIC Re targets inward overseas reinsurance premium by creating a presence in the Middle East, the Soviet block, and Far East. This indicates that GIC Re focuses on developing markets in these regions.
Q87.
GIC Re targets inward overseas reinsurance premium in which markets?Which statement accurately describes Lloyd's of London?

a.

Europe and the United StatesEach member of a Syndicate has unlimited liability.

b.

Middle East, Soviet block, and Far EastLloyd's is a market and an insurer.

c.

Africa and South AmericaLloyd's operations are solely supervised by the Department of Trade.

d.

Australia and New ZealandLloyd's operates only in the United Kingdom.

Discuss
Answer: (b).Middle East, Soviet block, and Far EastEach member of a Syndicate has unlimited liability. Explanation:GIC Re targets inward overseas reinsurance premium by creating a presence in the Middle East, the Soviet block, and Far East. This indicates that GIC Re focuses on developing markets in these regions.Each member of a Syndicate at Lloyd's has unlimited liability. This means that members are personally liable for the risks and losses associated with the syndicate they belong to.
Q88.
When was Lloyd's China established?

a.

2007

b.

1974

c.

1999

d.

1920

Discuss
Answer: (a).2007 Explanation:Lloyd's China was established in 2007 through Lloyd's Reinsurance Insurer (China) Limited. Its purpose is to provide reinsurance capacity for the fast-growing Chinese insurance market.
Q89.
What is the principal objective of the F.A.I.R Non-Life Reinsurance Pool?

a.

To accept reinsurance and retrocession business from the African and Asian markets.

b.

To provide insurance for the aviation and energy sectors.

c.

To facilitate trade in services between member countries.

d.

To promote foreign direct investment in developing countries.

Discuss
Answer: (a).To accept reinsurance and retrocession business from the African and Asian markets. Explanation:The principal objective of the F.A.I.R Non-Life Reinsurance Pool is to accept reinsurance and retrocession business from the African and Asian markets. This indicates that the pool focuses on providing reinsurance services for these regions.
Q90.
What is the principal objective of F.A.I.R pool?

a.

To accept insurance and reinsurance business from the African and American markets.

b.

To accept reinsurance and retrocession business from the African and Asian markets.

c.

To accept insurance and retrocession business from the Australian and Asian markets.

d.

To accept reinsurance and retrocession business from the Asian and Chinese markets.

Discuss
Answer: (b).To accept reinsurance and retrocession business from the African and Asian markets. Explanation:The principal objective of the F.A.I.R Non-Life Reinsurance Pool is to accept reinsurance and retrocession business from the African and Asian markets. This indicates that the pool focuses on providing reinsurance services for these specific regions.
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