Social Science Business Insurance
ARe 322
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API 320 Health Insurance Terms: ACA, Dedu... Chapter 01 Quiz: Health Insurance S... Ch. 10 E
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Lacey is an underwriter with Gladstone Insurance, which A. Sublimits
insures many residential properties in the southeastern
US. She is reading through the latest iteration of a In response to Gladstone's concentration of properties closest to the Gulf Coast
reinsurance agreement from lead reinsurer Friedman Re. for windstorm, the reinsurers have put in place sublimits that narrow the amount of
The treaty provides catastrophe coverage in several coverage.
layers. Lacey notices that the agreed-to limits have been
properly defined, but that the reinsurers have put in place
something that really narrows the amount of coverage for
certain high-value losses in very specific areas closest to
the Gulf Coast for the windstorm peril. The reinsurers
have most likely put in place which one of the following?
Select one:
A. Sublimits
B. Aggregations
C. Exclusions
D. Restrictions
sAmbiguity can be particularly difficult for parties to a D. Long-tailed treaty
reinsurance contract in which one of the following
situations? A long-tailed treaty that continues for a long time should have especially clear
Select one: and agreed-to contract language. Over time, individuals and companies may
A. One primary insurer and one reinsurer change and the language should be unambiguous to prevent misunderstandings
B. Change endorsements and misinterpretations.
C. Short-tailed treaty
D. Long-tailed treaty
,Shelby Insurance Company (SIC) is negotiating a C. Information technology specialist
property reinsurance treaty with Superior Reinsurance.
The contract language requires SIC to report a specific The information technology specialist should be consulted to determine whether
level of detail on each individual property ceded to the it is feasible to comply with the level of reporting and time line required by the
treaty within a relatively tight time frame. Which one of contract.
the following members of SIC's reinsurance contract
review team should be consulted for valuable insight on
this portion of the contract?
Select one:
A. Property underwriter
B. Auditor
C. Information technology specialist
D. Legal counsel
The board of directors of Primary Insurer decides to B. The sudden death provision of the commencement and termination clause of
replace key management positions. Such a change would the reinsurance treaty.
most specifically trigger which one of the following from
its reinsurer Wellman Re? Such a change would most specifically trigger the sudden death provision of the
Select one: commencement and termination clause of the reinsurance treaty.
A. The change of management clause of the reports and
remittances clause.
B. The sudden death provision of the commencement and
termination clause of the reinsurance treaty.
C. A claim audit by the reinsurer.
D. A mid-term treaty rate increase.
Which one of the following is true regarding the D. The time when and the place where certain terms are defined is a matter of
definitions clause in a reinsurance agreement? preference.
Select one:
A. Terms defined in the definitions clause provide the
most specificity or clarity within a reinsurance contract.
B. Definitions can be included throughout a reinsurance
contract or contained in a specific clause, but not both.
C. The terms defined in the definitions clause rarely vary
by contract, as they are universal to the parties involved.
D. The time when and the place where certain terms are
defined is a matter of preference.
A reinsurance attachment basis that covers policies D. Risks attaching basis.
issued or renewed by the primary insurer on or after the
reinsurance treaty's effective date is A reinsurance attachment basis that covers policies issued or renewed by the
Select one: primary insurer on or after the reinsurance treaty's effective date is the definition
A. In-force policies basis. of "risks attaching basis."
B. Policies issued basis.
C. Losses occurring basis.
D. Risks attaching basis.
, Gregory Insurance Company insures mostly homeowners B. Retrocessionaire.
property. It has a reinsurance agreement with Concord
Re. Concord Re has also reinsured some of its assumed Halpern Re is most specifically known as the retrocessionaire.
risks with Halpern Re. In this scenario, Halpern Re is most
specifically known as the
Select one:
A. Retrocedent.
B. Retrocessionaire.
C. Reinsurer.
D. Insurer.
Farmland has been having financial troubles failed any D. Even if the Commencement and Termination Clause specifically does not
rehabilitation efforts organized by its state insurance address this situation, usually both parties will not object to cancelling under
commissioner. Eventually because of this, Farmland is these circumstances.
now in process of liquidation. How will this action affect
Regis Re's reinsurance contract with Farmland? Even if the Commencement and Termination Clause specifically does not address
this situation, usually both parties will not object to cancelling under these
A. If the Commencement and Termination Clause does circumstances.
not address this situation, Regis Re can rely on the
sudden death provision in case of liquidation by the
primary insurer.
B. Because Regis Re is the sole reinsurer on this treaty, it
can decide to cancel the contract at any time and for any
reason.
C. Regis Re can only cancel the reinsurance agreement if
the Commencement and Termination Clause specifically
addresses liquidation.
D. Even if the Commencement and Termination Clause
specifically does not address this situation, usually both
parties will not object to cancelling under these
circumstances.
Based on sample Special Termination wording, the A. Often times involves a primary insurer unable to remit its premium to the
sudden death option reinsurer.
Select one:
A. Often times involves a primary insurer unable to remit
its premium to the reinsurer.
B. Immediately comes into use within a few days of an
organization's financial impairment.
C. Is used when one of the primary insurer's owners
passes away suddenly.
D. Can be invoked whenever a change of ownership has
become official.
GP Insurers has property excess of loss treaties with two A. Net retained lines clause
reinsurers, Jammock Re and Worchester Re. Which one of
the following clauses clarifies that, if Jammock Re
becomes insolvent, Worchester Re will be protected
from assuming Jammock's liability?
Select one:
A. Net retained lines clause
B. Business-covered clause
C. Errors and omissions clause
D. Special termination clause
ARe 322
Save
Students also studied
API 320 Health Insurance Terms: ACA, Dedu... Chapter 01 Quiz: Health Insurance S... Ch. 10 E
19 terms 42 terms 35 terms 29 terms
dfaust22 Preview wildbella1008 Preview alexdani6299 Preview eas
Lacey is an underwriter with Gladstone Insurance, which A. Sublimits
insures many residential properties in the southeastern
US. She is reading through the latest iteration of a In response to Gladstone's concentration of properties closest to the Gulf Coast
reinsurance agreement from lead reinsurer Friedman Re. for windstorm, the reinsurers have put in place sublimits that narrow the amount of
The treaty provides catastrophe coverage in several coverage.
layers. Lacey notices that the agreed-to limits have been
properly defined, but that the reinsurers have put in place
something that really narrows the amount of coverage for
certain high-value losses in very specific areas closest to
the Gulf Coast for the windstorm peril. The reinsurers
have most likely put in place which one of the following?
Select one:
A. Sublimits
B. Aggregations
C. Exclusions
D. Restrictions
sAmbiguity can be particularly difficult for parties to a D. Long-tailed treaty
reinsurance contract in which one of the following
situations? A long-tailed treaty that continues for a long time should have especially clear
Select one: and agreed-to contract language. Over time, individuals and companies may
A. One primary insurer and one reinsurer change and the language should be unambiguous to prevent misunderstandings
B. Change endorsements and misinterpretations.
C. Short-tailed treaty
D. Long-tailed treaty
,Shelby Insurance Company (SIC) is negotiating a C. Information technology specialist
property reinsurance treaty with Superior Reinsurance.
The contract language requires SIC to report a specific The information technology specialist should be consulted to determine whether
level of detail on each individual property ceded to the it is feasible to comply with the level of reporting and time line required by the
treaty within a relatively tight time frame. Which one of contract.
the following members of SIC's reinsurance contract
review team should be consulted for valuable insight on
this portion of the contract?
Select one:
A. Property underwriter
B. Auditor
C. Information technology specialist
D. Legal counsel
The board of directors of Primary Insurer decides to B. The sudden death provision of the commencement and termination clause of
replace key management positions. Such a change would the reinsurance treaty.
most specifically trigger which one of the following from
its reinsurer Wellman Re? Such a change would most specifically trigger the sudden death provision of the
Select one: commencement and termination clause of the reinsurance treaty.
A. The change of management clause of the reports and
remittances clause.
B. The sudden death provision of the commencement and
termination clause of the reinsurance treaty.
C. A claim audit by the reinsurer.
D. A mid-term treaty rate increase.
Which one of the following is true regarding the D. The time when and the place where certain terms are defined is a matter of
definitions clause in a reinsurance agreement? preference.
Select one:
A. Terms defined in the definitions clause provide the
most specificity or clarity within a reinsurance contract.
B. Definitions can be included throughout a reinsurance
contract or contained in a specific clause, but not both.
C. The terms defined in the definitions clause rarely vary
by contract, as they are universal to the parties involved.
D. The time when and the place where certain terms are
defined is a matter of preference.
A reinsurance attachment basis that covers policies D. Risks attaching basis.
issued or renewed by the primary insurer on or after the
reinsurance treaty's effective date is A reinsurance attachment basis that covers policies issued or renewed by the
Select one: primary insurer on or after the reinsurance treaty's effective date is the definition
A. In-force policies basis. of "risks attaching basis."
B. Policies issued basis.
C. Losses occurring basis.
D. Risks attaching basis.
, Gregory Insurance Company insures mostly homeowners B. Retrocessionaire.
property. It has a reinsurance agreement with Concord
Re. Concord Re has also reinsured some of its assumed Halpern Re is most specifically known as the retrocessionaire.
risks with Halpern Re. In this scenario, Halpern Re is most
specifically known as the
Select one:
A. Retrocedent.
B. Retrocessionaire.
C. Reinsurer.
D. Insurer.
Farmland has been having financial troubles failed any D. Even if the Commencement and Termination Clause specifically does not
rehabilitation efforts organized by its state insurance address this situation, usually both parties will not object to cancelling under
commissioner. Eventually because of this, Farmland is these circumstances.
now in process of liquidation. How will this action affect
Regis Re's reinsurance contract with Farmland? Even if the Commencement and Termination Clause specifically does not address
this situation, usually both parties will not object to cancelling under these
A. If the Commencement and Termination Clause does circumstances.
not address this situation, Regis Re can rely on the
sudden death provision in case of liquidation by the
primary insurer.
B. Because Regis Re is the sole reinsurer on this treaty, it
can decide to cancel the contract at any time and for any
reason.
C. Regis Re can only cancel the reinsurance agreement if
the Commencement and Termination Clause specifically
addresses liquidation.
D. Even if the Commencement and Termination Clause
specifically does not address this situation, usually both
parties will not object to cancelling under these
circumstances.
Based on sample Special Termination wording, the A. Often times involves a primary insurer unable to remit its premium to the
sudden death option reinsurer.
Select one:
A. Often times involves a primary insurer unable to remit
its premium to the reinsurer.
B. Immediately comes into use within a few days of an
organization's financial impairment.
C. Is used when one of the primary insurer's owners
passes away suddenly.
D. Can be invoked whenever a change of ownership has
become official.
GP Insurers has property excess of loss treaties with two A. Net retained lines clause
reinsurers, Jammock Re and Worchester Re. Which one of
the following clauses clarifies that, if Jammock Re
becomes insolvent, Worchester Re will be protected
from assuming Jammock's liability?
Select one:
A. Net retained lines clause
B. Business-covered clause
C. Errors and omissions clause
D. Special termination clause
