Retentions MCQs

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

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Retentions. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Retentions knowledge to the test? Let's get started with our carefully curated MCQs!

Retentions MCQs | Page 19 of 24

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Q181.
What events led to a reconsideration of the approach to personal accident insurance in India?

a.

Gujarat earthquake

b.

Terrorist attacks on WTC, New York

c.

Both a and b

d.

None of the above

Discuss
Answer: (c).Both a and b Explanation:The events of Gujarat earthquake and terrorist attacks on WTC, New York, required reconsideration in the approach to personal accident insurance in India.
Q182.
What factors affect the approach to the risk of burglary exposure?

a.

Security measures

b.

Law and order situation

c.

Values and size of assets involved

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The approach to the risk of burglary exposure is affected by security measures, law and order situation, and the values and size of assets involved.
Q183.
What is the difference in approach towards employer's liability between India and the USA?

a.

It is an issue under common law in India, but not in the USA

b.

It is of utmost concern in India, but not in the USA

c.

Both a and b

d.

There is no difference in approach towards employer's liability between India and the USA

Discuss
Answer: (a).It is an issue under common law in India, but not in the USA Explanation:Employer's liability is not an issue under common law in a country like India, but is of utmost concern in a country like the USA which has an extreme level of liability consciousness among its population and the judicial system which employs a much different criteria than the rest of the world in its approach towards granting liability awards.
Q184.
What is the major difference between marine insurance and most other non-life classes of insurance?

a.

The items to be insured are immobile

b.

The items to be insured are mobile and travel at high speed

c.

Marine insurance covers liabilities that are not related to the items being insured

d.

Marine insurance only covers ships, not cargo

Discuss
Answer: (b).The items to be insured are mobile and travel at high speed Explanation:There is one major difference between marine insurance and most other non-life classes of insurance. The items to be insured, including related liabilities, are mobile and, in some instances, travel at high speed.
Q185.
What is the role of a marine underwriter?

a.

To see all of the ships and cargoes they insure

b.

To rely on the good faith of others when insuring ships and cargoes

c.

To personally transport the ships and cargoes they insure

d.

To use technology to track the ships and cargoes they insure

Discuss
Answer: (b).To rely on the good faith of others when insuring ships and cargoes Explanation:A marine underwriter will actually see very few, if any, of the ships and cargoes that he insures. He depends very much on good faith on the part of others.
Q186.
What has the varied perils to which ships and cargo are exposed over many years resulted in?

a.

Marine insurance becoming less specialized

b.

Marine insurance markets evolving specialist types of cover

c.

Marine insurance becoming more expensive

d.

Marine insurance markets consolidating into a few large players

Discuss
Answer: (b).Marine insurance markets evolving specialist types of cover Explanation:The number of different types of ship and of cargo, and the varied perils to which they are exposed, has meant that over many years, specialist types of cover have been evolved by marine insurance markets.
Q187.
Why do marine reinsurers have to adopt different attitudes and practices than non-marine reinsurers?

a.

Because marine items to be insured are mobile and travel at high speed

b.

Because marine reinsurers have to look at proportional treaties through the eyes of a marine reinsurance underwriter

c.

Because marine reinsurers have to control the rating and claims processing of local crafts

d.

Both a and b

Discuss
Answer: (d).Both a and b Explanation:Marine reinsurers have to adopt both attitudes and practices which differ from those of the non-marine market" and that "It is therefore correct to look at proportional treaties very much through the eyes of a marine reinsurance underwriter.
Q188.
What is the difference between the problems of reinsurance for ocean-going vessels and local crafts?

a.

Reinsurers are more particular about controlling the rating or claims processing of local crafts

b.

Reinsurers are more particular about controlling the rating or claims processing of ocean-going vessels

c.

Reinsurers are not concerned with controlling the rating or claims processing of either ocean-going vessels or local crafts

d.

There is no difference in the problems of reinsurance for these two classes of vessels

Discuss
Answer: (b).Reinsurers are more particular about controlling the rating or claims processing of ocean-going vessels Explanation:The problems of reinsurance are different for these two classes of vessels. While reinsurers are not that particular to control the rating or claims processing of local crafts, they are keen to look into these aspects for the larger vessels.
Q189.
What is the Joint Hull Formula?

a.

A formula used by marine underwriters to determine premium rates

b.

A formula used by marine reinsurers to determine premium rates

c.

A formula used by marine underwriters and reinsurers to determine premium rates

d.

A formula used by marine insurers to determine premium rates

Discuss
Answer: (c).A formula used by marine underwriters and reinsurers to determine premium rates Explanation:The Joint Hull Formula is important to marine reinsurers, particularly those in the London market, and they like to be reassured that it will be followed. Both marine underwriters and reinsurers use specialized types of cover, that uses Joint Hull Formula.
Q190.
What is the major difference between marine insurance and most other non-life classes of insurance?

a.

The items to be insured are mobile

b.

The items to be insured are not mobile

c.

The items to be insured are not exposed to perils

d.

The items to be insured are not subject to liabilities

Discuss
Answer: (a).The items to be insured are mobile Explanation:The major difference between marine insurance and most other non-life classes of insurance is that the items to be insured, including related liabilities, are mobile.
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