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!

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Retentions MCQs | Page 21 of 24

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Q201.
What is the nature of the aviation insurance market?

a.

It is national in scope.

b.

It is not a competitive market.

c.

It is a truly international market.

d.

It is a monopolistic market.

Discuss
Answer: (c).It is a truly international market. Explanation:The aviation insurance market is truly international as risks are placed in all countries through exchange of reinsurance, which makes for a competitive and free market on a worldwide basis.
Q202.
What is the purpose of combining hull and liability policies in aviation insurance?

a.

To save on administration costs.

b.

To increase premiums.

c.

To limit coverage.

d.

To simplify underwriting.

Discuss
Answer: (a).To save on administration costs. Explanation:Separate policies for hulls and liabilities used to exist, but over the years, to save on administration, combined hull and liability policies have been produced.
Q203.
What is aviation reinsurance?

a.

A type of insurance that covers aircraft

b.

A type of insurance that covers aviation companies

c.

A type of insurance that covers aviation-related liabilities

d.

A type of insurance that covers aviation-related risks

Discuss
Answer: (d).A type of insurance that covers aviation-related risks Explanation:Aviation reinsurance is a type of insurance that covers aviation-related risks.
Q204.
What percentage of any aircraft is usually reinsured?

a.

Around 20%

b.

Around 50%

c.

Around 80%

d.

Around 100%

Discuss
Answer: (c).Around 80% Explanation:Around 80% of any aircraft is usually reinsured.
Q205.
What is the main problem with accumulation of risk in aviation insurance?

a.

The risk of damage to the aircraft

b.

The risk of passenger injury

c.

The risk of third party liability

d.

The risk of collision

Discuss
Answer: (d).The risk of collision Explanation:The main problem with accumulation of risk in aviation insurance is the risk of collision.
Q206.
What is the main form of coverage for airline risks?

a.

Separate policies for hulls and liabilities

b.

A policy for the operator's whole fleet

c.

A policy for each individual aircraft

d.

A policy for each individual passenger

Discuss
Answer: (b).A policy for the operator's whole fleet Explanation:The main form of coverage for airline risks is a policy for the operator's whole fleet.
Q207.
What are the general exclusions that reinsurers make for proportional treaties in aviation insurance?

a.

Hull war, long term policies, inward treaties, tonners, brokers binders and line slip, and profit commission, good experience return or deductible insurances

b.

Hull war, short term policies, outward treaties, liners, brokers binders and line slip, and loss reserves

c.

Engine malfunction, terrorism, war, tonnage, brokers binders and line slip, and profit commission, good experience return or deductible insurances

d.

Long term policies, outward treaties, war, tonnage, brokers binders and line slip, and loss reserves

Discuss
Answer: (a).Hull war, long term policies, inward treaties, tonners, brokers binders and line slip, and profit commission, good experience return or deductible insurances Explanation:The general exclusions that reinsurers make for proportional treaties in aviation insurance include hull war, long term policies, inward treaties, tonners, brokers binders and line slip, and profit commission, good experience return or deductible insurances.
Q208.
What is the annualized basis of life insurance exceeding economic growth in emerging markets over the last 20 years?

a.

2%

b.

5%

c.

9%

d.

20%

Discuss
Answer: (c).9% Explanation:Life insurance has exceeded economic growth in emerging markets by 9% on an annualized basis over the last 20 years.
Q209.
What is the reason for the growing concern for financial protection through life insurance?

a.

A decrease in global aging

b.

A lack of interest in financial protection

c.

An increase in global aging

d.

A decrease in government and business investment in financial protection

Discuss
Answer: (c).An increase in global aging Explanation:Concern for financial protection through life insurance is growing against the backdrop of global aging, in which both governments and business work to cope with aging populations.
Q210.
What is the general approach of a reinsurer respecting the life insurer's need?

a.

To have a greater reliance on reinsurance

b.

To have no reliance on reinsurance

c.

To provide expertise in understanding mortality and morbidity

d.

To not share the knowledge of market experience worldwide with the reassured

Discuss
Answer: (c).To provide expertise in understanding mortality and morbidity Explanation:The general approach of a reinsurer respects the life insurer's need not to have too great a reliance on reinsurance and to provide expertise in understanding mortality and morbidity.
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