1. what are the typical value factors that customers might use while choosing a general insurance company?

.Price .Financial Strength .Professional advice .All 2. Risk retention groups are a form of self-insurance. They are created by groups of companies or individuals within the same profession or business .True .False 3. Damaging someone elses automobile in a collision is an example of: .Property Insurance .Casualty Insurance .Liability Insurance .Disability Insurance 4. Agents act on behalf of the customer seeking insurance. As a result, brokers offer the products and services of multiple companies, but are not affiliated with any one company. .True .False 5. underwriting department is in charge of new product development , and pricing; .True .False 6. Most general Insurance policies cover natural disaster like earthquakes, & flood. .True .False 7. Independent agents that represents one company only for any one product are known as .Expert Agents .Single Agents .Exclusive Agents .Excluded Agents 8. General Insurance protects personal and commercial customers from financial losses associated with .Property damage or loss to physical property .Financial liability for damaging someone else's property .Financial liability for causing injury or death to another person .All of the above

9. Which Insurance protects businesses against losses resulting from employee dishonesty, such as theft or embezzlement? .Employment Insurance .Employee Insurance .Fidelity Insurance .Crime Insurance 10. The loss ratio measures underwriting losses divided by premium earned. .True .False 11. WHole life insurance pdts and TL insurance pdts differ as to whethere they contain a savings element, and whether they offer insurance coverage for the entire lifetime of the insured or for only a certain period of time. Whole/Term life insurance builds cash value that functions as a saving element. (Whole./Term) life insurance provides protection for the entire lifetime of the insured, so long as the policy remains if force. . Term/whole . term/term .whole/whole . whole/term 12. The primary sources of revenue for a life insurance company are .Premium income/net investment income/commissions .premium income/net investment income/fee income .premium income/commissions/fee income .net investment income/ commissions/fee income. 13. During a deferred annuity's accumulation period, the annuity account value is equal to the total of all premiums paid plus the interest earned on those premiums, .True .False 14. People buy insurance to help guard themselves against losses, To meet the needs of their customers, insurance companies sell protection against .emotional loss .psychological loss .economical loss .intellectual loss 15. XYZ Company purchased group life insurance. In this insurance is like most group life insurance, then, . the group policy insures a number of people under a single contract known as a master contract .the premium for the group policy will remain the same each year throughout the life of the policy, regardless of the groups's claims experience

.group members can choose the type and amount of insurance coverage they will receive . group members who leave the group will not be allowed to convert their group coverage to individual coverage 16. There is no named beneficiary, local custom or law prevails, which usually requires payment of the proceeds to either the policy owner ( if not the insured) or the insured's estate .True .False 17. To determine the premium rate for a group life insurance plan, the insurance provider bases its actuarial assumptions on the occupational classification of each employee/member, usually resulting in a flat rate of under a: .Group Life .Group accident death and dismemberment (AD&D) .none of the above 18. Henry Received in the mail, an insurance company's advertisement describing one of the company's products. The advertisement contained a full description of the product along with an application for the product. the advertisement also listed a too-free telephone number that Henry could call if he had any questions about the product. This situation illustrates the use of the insurance distribution system known as; .Direct Sales Bancassurance .General Agents. Brokers 19. Which type of insurance organization solicits business by selling their advisory capabilities and their specialized knowledge of the industry to advice customers on their purchase of insurance. .Risk retention group .Captive insurance company .Brokers .Self insurers ---20. When Lucy Leslie purchased a $200,000 term.... .A single, lump sum payment .Income for life .Fixed-period option .fixed amount option 21. Liabilities are items on the balance sheet, which the bank owes to others, .True .False

22. You want to sell some securities. A market maker quotes you two rates. Which rate is relevant for you as a seller? .Offer .Mid .Best .Bid 23. Money Market instruments have original maturity of more than one year. .TRue .False 24. Market participants who buy and sell securities on their own account are known as... .Issuers .Brokers .Investment banks .Dealers 25. Which of the following are examples of operational risk? a. system failure due to flooding of the data centre b.change in rates of interest on loans and deposits c. errors committed in data entry d. Fraud committed by an employee options. .ACD .BCD .None of Above .AB 26. Capital markets in which securities are traded after issue are known as: .Securites market .Secondary Market .Primary Market .Money Market 27. Which of the following is on the Liabilities side of the balance sheet of a Bank? .Loans .Short term Loans from other Banks .Cash .Fixed Assets 28. Asset-Liability Committee (ALCO) can eliminate interest rate risk .True .False

29. Long Term securites are traded in: .Primary market .Capital markets Money market .All of the above 30. A bond wth par value of Euro 20,000 is currently traded at Euro 10,000. The annual interest on the bond is Euro 2,000. What is te current yield on the Bond? .10 .20% .5 .15% 31. Lloyd's of London is a type of: .Self Insurance company .Insurance Exchange .Mutual Exchange .Stock Exchange 32. Insurance broker act on behalf of clients, and function as agents for any insurance company. .True .False 33. Initial claim reserves are set up by which department? .Financial Department .Business Finance department .Claims Department .Reserve Department 34. Which of the following is not a catastrophic loss? .A nuclear plant accident that impacts the surrounding area .SErvice property damages due to flood .6 cars collide each other in the motorway .Volcanic eruption causes damage to 200 homes 35. General Insurance companies are typically organized along three lines of business .Personal Lines, Private Lines, Cmmericial Lines .Commericial Lines, Deep Risks, PErsonal Lines .Private Lines, Commerical Lines, Deep Risks .Personal Lines, Commericial Lines, SPecial Risks

36. Regulations do not limit the type of investments an insurance company can make or the amount that can be invested in any one type of investment. These regulations are designed to ensure that life insurance companies are taking moderate risks in the their investment portfolios that could result in major investment gains, .True .False 37. Insurer has to establish procedures that ensure applicants are placed in the appropriate block of insured given the applicants health and lifestyle factors. To manage this, underwriting risk insurers; . Set premium rates appropriate for the amount of risk assumed .Establish risk-selection procedures for evaluating and classifying applicants. .Purchase reinsurance to limit their overall losses .All of the above 38. A life insurance company estimates for policy benefits it needs to pay as is become due. This is known as .Policyholder benefits .General expenses .Policyholder reserves .Commissions 39. The parties who are involved in a life insurance contract are: .Insured, Policy Owner, Creditor and the Beneficiary .Insured, Policy Owner and the Beneficiary .Insured, Beneficiary .Insured, Policy Owner 40. Susan wants to surrender her whole life insurance policy for its net cash surrender value. The cash value amount shown in her policy is 4500 and has an outstanding policy loan plus interest of 1000. The net cash surrender value payable to Susan is: .5500 .4500 .1000 .3500 41. There are certain factors considered by customers before they decide to purchase life insurance. The most common factor are .Fiancial stability of the issuers .Protection against loss at a reasonable price . quick processing of benefits . all of the above 42. Regulatory authority wants t o ensure that insurance companies follow the solvency requirements which are used to establish and maintain minimum levels of capital available to fulfill the promise to pay in the future if and/or when certain events occur. These cap...and solvency requirements are base on the: .Degree of risk in each type of business writen by the insurer .Size of the book of business in each class of insurance

.Claims experience of the company over a period . All of the above (Correct answer) 43. Which of the following will you find on the balance sheet of a bank>? .Provisions for loan lossess .Interest income .Operating Expenses .Cash 44. Which of these is not a function of a central Bank? .Facilitating trade payments .Setting monetary policy of a country .Issuing currency notes .Serving as 'bank to banks' 45. Which of the following is on the Liabilities side of the balance sheet of a Bank? .Cash .Loans .Fixed Asset .Short term loans from other Banks 46. Which of the following actions is used to manage Market Risk by Banks? .Setting limits .Buying derivatives .Using computer models .All of the above 47. Citibank places a deposit of USD 10Million with Barclays bank in Paris. What type of deposit is this>? .Certificate of Deposit .Euro Currency Deposit .Retail Depost .Corporate Deposit. 48. Property Insurance is known as First Party Coverage a. because the insured suffers the loss and therefore receives the claim payment b. Since someone other then the insured suffers the loss and receives the payment c. Since both first and third party receives payment when suffered from loss d. Coverage is given only for the first loss Ans a because the insured suffers the loss and therefore receives the claim payment

49. Risk retention groups are a form of: a.Reinsurance b.Bancassurance c.Free- insurance d.Self-Insurance Ans d Self Insurance

50. 51.General Insurers typically make more money in a.High Markets b.Hard Markets c.Hyper Markets d.Super Markets Ans b Hard Market

51. One benefit that may be added to a life insurance policy is the disability income benefit. One true statement about a disability benefit is that a.the amount of the monthly disability income benefit is a percentage of the insured's current earnings b.the insured must be totally disabled according to the policy's definition to receive the benefit c.the life insurance coverage is not available while the insured is disabled d.the insurance policies that include a disability income benefit rarely incude a waiver of premium benefit as well Ans b Not sure 52. 53.If the policy is irrevocable the beneficiary can be changed without the existing beneficiary's permissions

a.True b.Fasle Ans b False 53. The benefit that may be added to a life insurance policy for an addition at amount that is included in the premium is the Waiver premium benefit. One true statement about a waiver of premium benefit is that a.Provides term life insurance for the spouse and the childrens of the insured b.it pays a specific amount if death,the loss of a limb or the loss of sight is caused by an accident c.it covers situations in which the insured becomes disabled , allowing premium payments to be suspended for as long as the disability exists d.it provides additional insurance, typically in the form of decreasing term insurance, while the insured has greater family responsibilities Ans c 54. A derivatives contract to exchange future cash flows for a nominal amount is known as a.Forward Contract b.Future c.Option d.Swap Ans b Future Not sure 55. 56.Repos are transactions for sale of securities with an agreement to repurchased of these securities at a latter date a.True b.False

Ans a True

56. 57.The Government of Venezuela recently nationalized some financial institutions. What type of risk is reflectes in this event a.Operational b.Regulatory c.Market Risk d.Political Ans d.Political

57. The delivery of insurance products through a bank's distribution channels is known as a.Bank Finance b.Personal Insurance Loan c.Insurance Banking d.Bancassurance Ans d. Bank Assurance

58. THe financial instituations serving only commercial customers such as corporations, merchant banks and other financial instituations are known as; .Brokerage .Wholesale banks .insurance Company .Retail banks. 59. Asset-Liability Committe (ALCO) can eliminate interest rate risk .True

.False 60. One benefit that may be added to a life insurance policy for an additional amount that is included in the premium is the Waiver of premium benefit. One true statement about a waiver of premium benefit is that. .provides term life insurance for the spouse and children of the insured .it pays a specific amount if death, the loss of a limb or the loss of sight is caused by an accident .it covers situations in which the insured becomes disabled, allowing premium payments to be suspended for as long as the disability exists .it provides additional insurance, typically in the from of decreasing term insurance, while the insured has greater familiy and financial responsibilities 61. General insurance policies are usually return for three years, .True .False 62. A company can give loans but cannot accept deposits. What type of Financial services Firm is this? .Bank .Investment Bank. .Finance Company .Insurance Comapny 63. Which of the following are alternative risk transfer (ART)? .Structured Finance .Custom Derivatives .Captives .All of the above 64. All of thre following organizations are involved in the life insurance industry, a) Reinsurannce companies b) self-insurers c) Insurance Brokers d)Captive Insurance companies. .True .False 65. One of the important risks, insurance companies face is the Liquidity risk. To minimize this risk, life insurance companies try to maximize their asset-liability matching. Asset-Liability matching requires close coordination between an insurance company's investment department and the actuarial department .True .False 66. Bancassurance is a fast growing channel for life insurance distribution. Its growth is attributed to several factors. All are incorrect except .It provides a high cost of sales compared to captive agent networks/ It offers a high cost of entity into foreign markets for large, global life insurance companies .It provides for lower cost of sales compared to captive agent networks. It offers a lower cost of entry into foreign markets for large, global life insurance companies.

.It provides a high cost of sales compared to captive agent networks. It offers a lower cost of entry into foreign markets for large, global life insurance companies. .It provides a lower cost of sales compared to captive agent networks. IT offers a high cost of entry into foreign markets of large, global life insurance companies. 67. During a deferred annuity's accumulation period, the annuity account value is equal to the total of all premiums paid plus the interest earned on those premiums. .True .False