Social Science Business Insurance
ARe 321
Save
ABC Insurance Group is growing its A. Obtain underwriting guidance
business faster than it anticipated
and is ready to purchase reinsurance Because ABC Insurance Group is purchasing
for the first time. Which one of the reinsurance for the first time, it's entering new
following reasons insurers use territory and can benefit greatly from the expertise
reinsurance is particularly important and experience of its reinsurers. Reinsurers often
to ABC at this point in the company's provide guidance.
journey?
Select one:
A. Obtain underwriting guidance
B. Surplus relief
C. Stabilization of loss experience
D. Protection from catastrophic
losses
,Jackson Insurance has a treaty with B. Service of suit clause
the Worldco Group, and in particular
with Axle Reinsurance that is not The service of suit clause is included in reinsurance
authorized to sell reinsurance in contracts to protect the primary insurer when the
Jackson's Indiana state of domicile, reinsurer is unauthorized or based outside the U.S.
or even in the United States. Jackson
is not anticipating any issues but it
anxious to start the proceedings and
filings to get its money as soon as
possible and so hopes to begin the
process in a US court. Which one of
the following clauses is particularly
helpful to Jackson in this situation?
Select one:
A. Funding clause
B. Service of suit clause
C. Intermediary clause
D. Unauthorized reinsurance Clause
, Three Hills Insurance (THI) has a D. Quota share pro rata reinsurance
reinsurance agreement with Medford
Re on its property portfolio. The Quota share = same percentage of all policies
agreement applies to all policies in Surplus share = only the portion above retention
the property portfolio. THI agrees to Excess of loss = covers losses above a threshold,
retain 60% of the insurance, not a fixed % of premiums.
premium, and losses, and cedes 40%
of the insurance, premium, and
losses to Medford Re. Which one of
the following categories of treaty
reinsurance does this agreement
represent?
Select one:
A. Per risk excess of loss reinsurance
B. Per occurrence excess of loss
reinsurance
C. Surplus share pro rata reinsurance
D. Quota share pro rata reinsurance
To better manage catastrophic C. Exclude catastrophic losses from its quota share
losses, WW Insurance purchases treaty.
catastrophe reinsurance in addition
to its quota share treaty. In Once catastrophe reinsurance is in place, the quota
recognition of this separate share treaty can exclude catastrophic losses, since
agreement, WWI can most likely then those losses are now covered by the separate
Select one: catastrophe treaty.
A. Use both treaties to facilitate
withdrawal from catastrophe prone
areas.
B. Pay for catastrophic losses from
both of its treaties.
C. Exclude catastrophic losses from
its quota share treaty.
D. Increase large line capacity and
obtain surplus relief.
ARe 321
Save
ABC Insurance Group is growing its A. Obtain underwriting guidance
business faster than it anticipated
and is ready to purchase reinsurance Because ABC Insurance Group is purchasing
for the first time. Which one of the reinsurance for the first time, it's entering new
following reasons insurers use territory and can benefit greatly from the expertise
reinsurance is particularly important and experience of its reinsurers. Reinsurers often
to ABC at this point in the company's provide guidance.
journey?
Select one:
A. Obtain underwriting guidance
B. Surplus relief
C. Stabilization of loss experience
D. Protection from catastrophic
losses
,Jackson Insurance has a treaty with B. Service of suit clause
the Worldco Group, and in particular
with Axle Reinsurance that is not The service of suit clause is included in reinsurance
authorized to sell reinsurance in contracts to protect the primary insurer when the
Jackson's Indiana state of domicile, reinsurer is unauthorized or based outside the U.S.
or even in the United States. Jackson
is not anticipating any issues but it
anxious to start the proceedings and
filings to get its money as soon as
possible and so hopes to begin the
process in a US court. Which one of
the following clauses is particularly
helpful to Jackson in this situation?
Select one:
A. Funding clause
B. Service of suit clause
C. Intermediary clause
D. Unauthorized reinsurance Clause
, Three Hills Insurance (THI) has a D. Quota share pro rata reinsurance
reinsurance agreement with Medford
Re on its property portfolio. The Quota share = same percentage of all policies
agreement applies to all policies in Surplus share = only the portion above retention
the property portfolio. THI agrees to Excess of loss = covers losses above a threshold,
retain 60% of the insurance, not a fixed % of premiums.
premium, and losses, and cedes 40%
of the insurance, premium, and
losses to Medford Re. Which one of
the following categories of treaty
reinsurance does this agreement
represent?
Select one:
A. Per risk excess of loss reinsurance
B. Per occurrence excess of loss
reinsurance
C. Surplus share pro rata reinsurance
D. Quota share pro rata reinsurance
To better manage catastrophic C. Exclude catastrophic losses from its quota share
losses, WW Insurance purchases treaty.
catastrophe reinsurance in addition
to its quota share treaty. In Once catastrophe reinsurance is in place, the quota
recognition of this separate share treaty can exclude catastrophic losses, since
agreement, WWI can most likely then those losses are now covered by the separate
Select one: catastrophe treaty.
A. Use both treaties to facilitate
withdrawal from catastrophe prone
areas.
B. Pay for catastrophic losses from
both of its treaties.
C. Exclude catastrophic losses from
its quota share treaty.
D. Increase large line capacity and
obtain surplus relief.
