Global Insurance Knowledge

What is the main purpose of underwriting in the insurance industry?

• To investigate and settle insurance claims.

• To provide financial support to policyholders.

• To assess and evaluate risks and determine appropriate premiums.

• To market and sell insurance policies.

Which of the following is NOT a common reinsurance arrangement?

• Quota share

• Surplus share

• Excess of loss

• Sidecar

What is the role of claims management in the insurance process?

• Claims management is the process of handling and resolving insurance claims.

• Claims management is the process of ignoring insurance claims.

• Claims management is the process of delaying insurance claims.

• Claims management is the process of denying insurance claims.

What factors are considered in risk assessment for insurance policies?

• Number of children, hobbies, and favorite color

• Age, health, occupation, lifestyle, and claims history

• Education level, marital status, and income

• Gender, location, credit score, and driving record

What is the purpose of motor cover in insurance?

• To protect the motor from dust and dirt.

• To provide financial protection against damage or loss to a vehicle.

• To provide coverage for personal injuries.

• To offer discounts on vehicle repairs.

What are the key responsibilities of an underwriter?

• Providing customer service and support

• Selling insurance policies to customers

• Assessing and evaluating risks, analyzing financial data, determining insurance premiums, reviewing insurance applications, and making decisions on whether to approve or deny insurance coverage.

• Processing insurance claims

Which type of reinsurance provides coverage for a specific policy or risk?

• facultative reinsurance

• retrocession

• excess of loss reinsurance

• treaty reinsurance

How does claims management help in reducing insurance fraud?

• Claims management relies solely on customer honesty to reduce insurance fraud.

• Claims management helps in reducing insurance fraud by implementing various measures such as thorough investigation of claims, data analysis to identify patterns of fraud, and implementing fraud detection technology.

• Claims management increases the likelihood of insurance fraud.

• Claims management has no impact on reducing insurance fraud.

What methods are used for risk assessment in insurance?

• premium calculation, claims processing, and policy issuance

• market research, customer service, and sales

• actuarial analysis, underwriting, and statistical modeling

• financial analysis, investment management, and portfolio optimization

What are the different types of motor cover available?

• comprehensive cover, third-party fire and theft cover, and third-party only cover

• property damage cover, bodily injury cover, and underinsured motorist cover

• uninsured motorist cover, medical payments cover, and rental reimbursement cover

• collision cover, liability cover, and personal injury protection cover