Reinsurance and Insurance Quiz

What is the role of the General Insurance Corporation of India?

• National insurer for life insurance

• National regulator for insurance companies

• National reinsurer

• Provider of micro-insurance

• None of the above

What is facultative reinsurance?

• Reinsurance beyond the retention limit of the primary insurer

• Reinsurance where the reinsurer decides whether to accept the risk or not

• Reinsurance arranged with multiple reinsurers

• Reinsurance for all businesses to be reinsured

• Reinsurance for a specific period and renewable terms

What is the process of transferring risk from one insurance company to another called?

• Prevention/avoidance

• Reduction

• Reinsurance

• Retention

• None of the above

What is the role of LIC and GIC in India?

• LIC and GIC design insurance programs for social welfare.

• LIC and GIC provide allowances and medical costs for low-income earners.

• LIC and GIC offer education opportunities for the weaker sections of society.

• LIC and GIC reduce the government's costs.

• LIC and GIC provide subsidies for the unorganized sector.

What is the term used when a primary insurer passes risk on to a reinsurer?

• Ceding

• Retrocession

• Treaties

• Facultative reinsurance

• Surplus reinsurance

What is the purpose of crop insurance?

• To safeguard the financial stability of rural areas.

• To invest funds in high-risk agricultural projects.

• To contribute to government funds.

• To provide information on agricultural losses.

• To prevent businesses from going broke.

What is the term used when a reinsurer reinsures with another reinsurer or insurance company?

• Ceding

• Retrocession

• Treaties

• Facultative reinsurance

• Surplus reinsurance

What are treaties in the context of reinsurance?

• Agreements between the ceding company and the reinsurer

• Proportions of all businesses to be reinsured

• Treaties specifying retention limits for various risks

• Agreements between the reinsurer and retrocessionaires

• Agreements between the primary insurer and policyholders

How are insurance premiums determined by insurers?

• Based on prevention/avoidance measures

• Based on risk reduction strategies

• Based on statistical principles and the expectation of loss

• Based on the insurer's profit goals

• None of the above

In reinsurance treaties, when does the reinsurer typically become involved?

• When the loss exceeds a certain limit

• When the primary insurer transfers the risk

• When catastrophic events occur

• When the retention limit is reached

• When the premium cession is complete