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Quiz Reinsurance and bancassurance

Total questions: 10

Worksheet time: 4mins

Name
Class
Date
1.

Reinsurance allows an insurance company to:

a)

a. Expand its capacity

b)

b. Stabilise its underwriting results

c)

c. Finance its expanding volume

d)

d. All of the above

2.

Prudent insurers

a)

a. Will avoid over-exposure on any risk

b)

b. Will focus on profit only

c)

c. Will always only take risks they have experience in

d)

d. Only use facultative reinsurance to reinsure business

3.

SBI Life Insurance Company has alliance with State Bank of India.

a)

True

b)

False

4.

The reinsurer that sets the terms for the contract is called the:

a)

a. following reinsurer

b)

b. lead reinsurer

c)

c. chief reinsurer

d)

d. stakeholding reinsurer

e)

e. major reinsurer

5.

A reinsurance contract is a contract of indemnity.

a)

True

b)

False

6.

Reinsurance companies are not by law allowed to purchase their own reinsurance from other reinsurers.

a)

True

b)

False

7.

An insurance company which places business, with a reinsurance company is known as a........

a)

Casualty

b)

Cedant

c)

Catastrophe

8.

What is the main purpose of insurance?

a)

to follow the law

b)

to get weathly

c)

For investment purposes

d)

To reduce risk

9.

Which of the following typically have the highest insurance premiums?

a)

Young, inexperienced drivers

b)

Older, experienced drivers

c)

Drivers who have with safe driving records

d)

Drivers who travel long distances

10.

What are riders?

a)

Additional coverage for specific items

b)

Estimates

c)

Adjustments to insurance

d)

Damages