Which of the following are examples of risk financing methods?

• Risk retention and risk transfer

• Risk mitigation and risk avoidance

• Risk transfer and risk tolerance

• None of the options are correct

Who are the primary players in the insurance industry?

• Clients, brokers, and banks

• Clients, insurance companies, and agents

• Policyholders, analysts, and underwriters

• None of the answers provided are correct

What does the term ‘Captive Insurer’ refer to?

• A company that insures only third-party risks

• An insurer restricted by its owners

• An insurance firm owned by a parent to insure its own risks

• All answers listed are correct

Which of the following is NOT typically included under personal insurance policies?

• Household contents and buildings

• Private car insurance

• Overseas travel coverage

• Industrial machinery breakdown

Which of the following is NOT part of standard commercial insurance coverage?

• Yachts for personal leisure

• Business insurance bundles

• Industrial machine protection

• Technology equipment coverage

What are ‘Statutory Classes’ of insurance?

• Policies covering government-owned property

• Insurance types that are mandated by law

• Policies with long-term legal protections

• None of the options listed is true

What does the term ‘Indemnity Limit’ refer to in insurance?

• The amount of coverage that can be purchased

• The maximum amount payable by the insurer

• The value of the asset being insured

• All options listed are accurate

What is a ‘Deductible’ or ‘Excess’ in insurance terms?

• The amount not paid by the insurer when a claim arises

• A fee paid by the insurer at the start of the policy

• A contribution made by the insurance broker

• The amount reimbursed to the insured after a loss

In reinsurance, who is referred to as the cedant?

• The insurer that gives part of its risk to another

• The reinsurer that assumes large risks 

• The underwriter who manages limits

• All listed statements are true

What is the definition of Treaty Reinsurance?

• Risk is chosen and accepted on a case-by-case basis

• A reinsurer agrees to accept a whole group of risks

• The reinsurer and insurer both select individual risks

• None of the answers provided apply