gen 3a sample questions. sample multi-choice questions

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  • GEN 3A Sample Questions

  • Sample Multi-ChoiceQuestions

  • Sample Question Risk probability is related most closely to which of the following?

    ASeverity of lossBFrequency of lossCA combination of frequency and severity of lossDTrends of loss history

  • Answer Risk probability is related most closely to which of the following?

    ASeverity of lossBFrequency of lossCA combination of frequency and severity of lossDTrends of loss history

    Answer: B

  • Sample Question Which of the following is an example of physical risk control? A Transference of liability by contract BReduction of liability by outsourcing production CRetention of liability using a Captive insurer DEvaluation of measurable hazards

  • AnswerWhich of the following is an example of physical risk control? A Transference of liability by contractBReduction of liability by outsourcing productionCRetention of liability using a Captive insurerDEvaluation of measurable hazards

    Answer: B

  • Sample Question In the Irish motor insurance market, what (if any) is the standard basis used by insurers when pricing their insurance products so far as permitted driving is concerned?

    AThere is no standard practiceBThe starting point is owner-only driving with increases in premium for greater numbers drivingCThe starting point is named drivers with reductions in premium for owner-only driving and increases for any driverDThe starting point is any driver with reductions in premium for more limited arrangements

  • AnswerIn the Irish motor insurance market, what (if any) is the standard basis used by insurers when pricing their insurance products so far as permitted driving is concerned?

    AThere is no standard practiceBThe starting point is owner-only driving with increases in premium for greater numbers drivingCThe starting point is named drivers with reductions in premium for owner-only driving and increases for any driverDThe starting point is any driver with reductions in premium for more limited arrangements

    Answer: C

  • Sample QuestionWhich of the following is an underlying risk improvement measure in relation to motor insurance?

    AReduction of policy coverBPremium loadingCApplication of an excessDInstallation of an immobiliser and alarm

  • AnswerWhich of the following is an underlying risk improvement measure in relation to motor insurance?

    AReduction of policy coverBPremium loadingCApplication of an excessDInstallation of an immobiliser and alarm

    Answer: D

  • Sample QuestionWhat is the purpose of an Irish Agrment Board Certificate?

    AIt certifies the fitness of new building productsBIt certifies safety of a wide range of products in different industriesCIt certifies firms to permit them to manufacture specific productsDIt certifies an established safety record for products

  • Answer

    What is the purpose of an Irish Agrment Board Certificate?

    AIt certifies the fitness of new building productsBIt certifies safety of a wide range of products in different industriesCIt certifies firms to permit them to manufacture specific productsDIt certifies an established safety record for products

    Answer: A

  • Sample QuestionWhich of the following broad descriptions describes the motivation of most intermediaries in the insurance market?

    ASales-ledBProduction-ledCMarketing-ledDCommission-led

  • Answer

    Which of the following broad descriptions describes the motivation of most intermediaries in the insurance market?

    ASales-ledBProduction-ledCMarketing-ledDCommission-led

    Answer: C

  • Sample QuestionThe use of which of the following represents an indirect channel so far as an insurer is concerned?

    AInternetBTelemarketingCMediaDAuthorised advisor

  • Answer

    The use of which of the following represents an indirect channel so far as an insurer is concerned?

    AInternetBTelemarketingCMediaDAuthorised advisor

    Answer: D

  • Sample Question Which of the following statements is true regarding a reason why statement?

    AA reason why statement must be prepared for every riskBA reason why statement must be in a prescribed formCA reason why statement must reflect the complexity of the productDA reason why statement is only required for life, pensions and investment products

  • Answer

    Which of the following statements is true regarding a reason why statement?

    AA reason why statement must be prepared for every riskBA reason why statement must be in a prescribed formCA reason why statement must reflect the complexity of the productDA reason why statement is only required for life, pensions and investment products

    Answer: C

  • Sample QuestionHow is the premises risk for a commercial public liability insurance usually arrived at?

    AIt is flat-ratedBA rate is applied to wagesCA rate is applied to turnoverDA rate is applied to floor area

  • AnswerHow is the premises risk for a commercial public liability insurance usually arrived at?

    AIt is flat-ratedBA rate is applied to wagesCA rate is applied to turnoverDA rate is applied to floor area

    Answer: A

  • Sample QuestionIf the Financial Services Ombudsman decides no formal investigation of a complaint is warranted, what happens next in the process?

    ABoth parties are advised and no appeal is permittedBBoth parties are advised and any appeal is reviewed by the deputy Ombudsman whose decision is finalCBoth parties are advised and any appeal is reviewed by the deputy Ombudsman whose decision may be subject to further appeal proceduresDBoth parties are advised and any appeal is reviewed by the deputy Ombudsman whose decision may only be appealed in a Court of law

  • AnswerIf the Financial Services Ombudsman decides no formal investigation of a complaint is warranted, what happens next in the process?

    ABoth parties are advised and no appeal is permittedBBoth parties are advised and any appeal is reviewed by the deputy Ombudsman whose decision is finalCBoth parties are advised and any appeal is reviewed by the deputy Ombudsman whose decision may be subject to further appeal proceduresDBoth parties are advised and any appeal is reviewed by the deputy Ombudsman whose decision may only be appealed in a Court of law

    Answer: C

  • Sample ProblemQuestion

  • Sample Problem QuestionXYZ is an insurer with a substantial commercial property portfolio. Senior management wish to review their underwriting approach for this class of business.

  • Sample Problem Question AWhen XYZ consider how to develop an appropriate average rate which of the following is an external rather than an internal factor?

    AExpensesBInflationCReserveDProfit

  • Sample Problem Question BWhen XYZ assess their claims experience, to what does the term Incurred But Not Enough Reported Claims refer?

    AClaims that must have taken place but of which the insurer is as yet unawareBA lack of recently reported claimsCThe uncertainty of placing values on recently reported claimsDThe general difficulty of accurate measurement of claims that remain outstanding

  • Sample Problem Question CIf XYZ decide to allocate earned premiums on the basis of the proportion of the period of cover under each policy that relates to each accounting period, what is their underlying assumption?

    AThat there is an equal amount of risk in each accounting periodBThat acquisition costs are unimportantCThat there will be sufficient premium to cover any future lossesDThat risk exposure is proportionate to time

  • Sample Problem Question D When calculating the average rate, what exposure measure is most likely to be used by XYZ?

    APolicies would be flat-ratedB100 Sum insuredC1,000 TurnoverDPremium per property

  • Sample Problem Question EWhen XYZ consider their approach to individual risk assessment which of the following measures is most likely to be effective when there is a particular requirement essential for the acceptance of a risk ?

    AApplication of a warrantyBA premium increase to reflect the greater likelihood of claimsCCo-insurance on the part of the insured to encourage compliance with requirementsDRestriction of policy cover either in size of sum nsured or scope of cover

  • Answers to Problem QuestionA Answer: B

    B Answer: C

    C Answer: D

    D Answer: B

    E Answer: A