gen 3a sample questions. sample multi-choice questions

GEN 3A Sample GEN 3A Sample

QuestionsQuestions

Sample Multi-ChoiceSample Multi-ChoiceQuestions Questions

Sample QuestionSample Question

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

AA Severity of lossSeverity of lossBB Frequency of lossFrequency of lossCC A combination of frequency and severity of lossA combination of frequency and severity of lossDD Trends of loss historyTrends of loss history

AnswerAnswer

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

AA Severity of lossSeverity of lossBB Frequency of lossFrequency of lossCC A combination of frequency and severity of lossA combination of frequency and severity of lossDD Trends of loss historyTrends of loss history

Answer: BAnswer: B


Which of the following is an example of physical risk control?Which of the following is an example of physical risk control?

A A Transference of liability by contractTransference of liability by contract BB Reduction of liability by outsourcing productionReduction of liability by outsourcing production CC Retention of liability using a Captive insurerRetention of liability using a Captive insurer DD Evaluation of measurable hazardsEvaluation of measurable hazards

AnswerAnswer

Which of the following is an example of physical risk control?Which of the following is an example of physical risk control?

A A Transference of liability by contractTransference of liability by contractBB Reduction of liability by outsourcing productionReduction of liability by outsourcing productionCC Retention of liability using a Captive insurerRetention of liability using a Captive insurerDD Evaluation of measurable hazardsEvaluation of measurable hazards

Answer: BAnswer: B

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

AA There is no standard practiceThere is no standard practiceBB The starting point is The starting point is ‘owner-only driving’‘owner-only driving’ with increases in with increases in premium for greater numbers drivingpremium for greater numbers drivingCC The starting point is The starting point is ‘named drivers’‘named drivers’ with reductions in with reductions in

premium for premium for ‘owner-only driving’‘owner-only driving’ and increases for and increases for ‘any ‘any driver’driver’

DD The starting point is The starting point is ‘any driver’‘any driver’ with reductions in premium with reductions in premium for for more limited arrangements more limited arrangements


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

AA There is no standard practiceThere is no standard practiceBB The starting point is The starting point is ‘owner-only driving’‘owner-only driving’ with increases in with increases in premium for greater numbers drivingpremium for greater numbers drivingCC The starting point is The starting point is ‘named drivers’‘named drivers’ with reductions in with reductions in premium premium for for ‘owner-only driving’‘owner-only driving’ and increases for and increases for ‘any driver’‘any driver’DD The starting point is The starting point is ‘any driver’‘any driver’ with reductions in premium with reductions in premium for for more limited arrangementsmore limited arrangements

Answer: CAnswer: C

AnswerAnswer

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

AA Reduction of policy coverReduction of policy coverBB Premium loadingPremium loadingCC Application of an excessApplication of an excessDD Installation of an immobiliser and alarmInstallation of an immobiliser and alarm


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

AA Reduction of policy coverReduction of policy coverBB Premium loadingPremium loadingCC Application of an excessApplication of an excessDD Installation of an immobiliser and alarmInstallation of an immobiliser and alarm

Answer: DAnswer: D

AnswerAnswer

What is the purpose of an Irish Agrément Board Certificate?What is the purpose of an Irish Agrément Board Certificate?

AA It certifies the fitness of new building productsIt certifies the fitness of new building productsBB It certifies safety of a wide range of products in different industriesIt certifies safety of a wide range of products in different industriesCC It certifies firms to permit them to manufacture specific productsIt certifies firms to permit them to manufacture specific productsDD It certifies an established safety record for productsIt certifies an established safety record for products


What is the purpose of an Irish Agrément Board Certificate?What is the purpose of an Irish Agrément Board Certificate?

AA It certifies the fitness of new building productsIt certifies the fitness of new building productsBB It certifies safety of a wide range of products in different industriesIt certifies safety of a wide range of products in different industriesCC It certifies firms to permit them to manufacture specific productsIt certifies firms to permit them to manufacture specific productsDD It certifies an established safety record for productsIt certifies an established safety record for products

Answer: AAnswer: A

AnswerAnswer

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

AA Sales-ledSales-ledBB Production-ledProduction-ledCC Marketing-ledMarketing-ledDD Commission-ledCommission-led


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

AA Sales-ledSales-ledBB Production-ledProduction-ledCC Marketing-ledMarketing-ledDD Commission-ledCommission-led

Answer: CAnswer: C

AnswerAnswer

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

AA InternetInternetBB TelemarketingTelemarketingCC MediaMediaDD Authorised advisorAuthorised advisor


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

AA InternetInternetBB TelemarketingTelemarketingCC MediaMediaDD Authorised advisorAuthorised advisor

Answer: DAnswer: D

AnswerAnswer

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

AA A A ‘reason why’‘reason why’ statement must be prepared for every risk statement must be prepared for every riskBB A A ‘reason why’‘reason why’ statement must be in a prescribed form statement must be in a prescribed formCC A A ‘reason why’‘reason why’ statement must reflect the complexity of the statement must reflect the complexity of the

productproductDD A A ‘reason why’‘reason why’ statement is only required for life, pensions statement is only required for life, pensions and and investment productsinvestment products


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

AA A A ‘reason why’‘reason why’ statement must be prepared for every risk statement must be prepared for every riskBB A A ‘reason why’‘reason why’ statement must be in a prescribed form statement must be in a prescribed formCC A A ‘reason why’‘reason why’ statement must reflect the complexity of the statement must reflect the complexity of the

productproductDD A A ‘reason why’‘reason why’ statement is only required for life, pensions statement is only required for life, pensions and and investment productsinvestment products

Answer: CAnswer: C

AnswerAnswer

How is the How is the ‘premises’‘premises’ risk for a commercial public liability insurance risk for a commercial public liability insurance usually arrived at? usually arrived at?

AA It is flat-ratedIt is flat-ratedBB A rate is applied to wagesA rate is applied to wagesCC A rate is applied to turnoverA rate is applied to turnoverDD A rate is applied to floor areaA rate is applied to floor area


How is the How is the ‘premises’‘premises’ risk for a commercial public liability insurance risk for a commercial public liability insurance usually arrived at? usually arrived at?

AA It is flat-ratedIt is flat-ratedBB A rate is applied to wagesA rate is applied to wagesCC A rate is applied to turnoverA rate is applied to turnoverDD A rate is applied to floor areaA rate is applied to floor area

Answer: AAnswer: A

AnswerAnswer

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

AA Both parties are advised and no appeal is permittedBoth parties are advised and no appeal is permittedBB Both parties are advised and any appeal is reviewed by the Both parties are advised and any appeal is reviewed by the

deputy Ombudsman whose decision is finaldeputy Ombudsman whose decision is finalCC Both parties are advised and any appeal is reviewed by the Both parties are advised and any appeal is reviewed by the

deputy Ombudsman whose decision may be subject to deputy Ombudsman whose decision may be subject to further further appeal proceduresappeal proceduresDD Both parties are advised and any appeal is reviewed by the Both parties are advised and any appeal is reviewed by the

deputy Ombudsman whose decision may only be appealed deputy Ombudsman whose decision may only be appealed in a in a Court of lawCourt of law


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

AA Both parties are advised and no appeal is permittedBoth parties are advised and no appeal is permittedBB Both parties are advised and any appeal is reviewed by the Both parties are advised and any appeal is reviewed by the

deputy Ombudsman whose decision is finaldeputy Ombudsman whose decision is finalCC Both parties are advised and any appeal is reviewed by the Both parties are advised and any appeal is reviewed by the

deputy Ombudsman whose decision may be subject to deputy Ombudsman whose decision may be subject to further further appeal proceduresappeal proceduresDD Both parties are advised and any appeal is reviewed by the Both parties are advised and any appeal is reviewed by the

deputy Ombudsman whose decision may only be appealed in deputy Ombudsman whose decision may only be appealed in a a Court of lawCourt of law

Answer: CAnswer: C

AnswerAnswer

Sample ProblemSample ProblemQuestion Question

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

Sample Problem QuestionSample Problem Question

When XYZ consider how to develop an appropriate average rate When XYZ consider how to develop an appropriate average rate which of the following is an external rather than an internal factor?which of the following is an external rather than an internal factor?

AA ExpensesExpensesBB InflationInflationCC ReserveReserveDD ProfitProfit

Sample Problem Sample Problem Question AQuestion A

When XYZ assess their claims experience, to what does the term When XYZ assess their claims experience, to what does the term ‘Incurred But Not Enough Reported Claims’‘Incurred But Not Enough Reported Claims’ refer? refer?

AA Claims that must have taken place but of which the insurer is Claims that must have taken place but of which the insurer is as as yet unawareyet unawareBB A lack of recently reported claimsA lack of recently reported claimsCC The uncertainty of placing values on recently reported claimsThe uncertainty of placing values on recently reported claimsDD The general difficulty of accurate measurement of claims that The general difficulty of accurate measurement of claims that

remain outstandingremain outstanding

Sample Problem Sample Problem Question BQuestion B

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

AA That there is an equal amount of risk in each accounting That there is an equal amount of risk in each accounting periodperiodBB That acquisition costs are unimportantThat acquisition costs are unimportantCC That there will be sufficient premium to cover any future That there will be sufficient premium to cover any future losseslossesDD That risk exposure is proportionate to timeThat risk exposure is proportionate to time

Sample Problem Sample Problem Question CQuestion C

Sample Problem Sample Problem Question DQuestion D

When calculating the average rate, what exposure measure is most When calculating the average rate, what exposure measure is most likely to be used by XYZ?likely to be used by XYZ?

AA Policies would be flat-ratedPolicies would be flat-ratedBB €100 Sum insured€100 Sum insuredCC €1,000 Turnover€1,000 TurnoverDD Premium per propertyPremium per property

Sample Problem Sample Problem Question EQuestion E

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

AA Application of a warrantyApplication of a warrantyBB A premium increase to reflect the greater likelihood of claimsA premium increase to reflect the greater likelihood of claimsCC Co-insurance on the part of the insured to encourage compliance Co-insurance on the part of the insured to encourage compliance

with requirementswith requirementsDD Restriction of policy cover either in size of sum nsured or scope Restriction of policy cover either in size of sum nsured or scope of of covercover

A – Answer: BA – Answer: B

B B – Answer: C– Answer: C

C C – Answer: D– Answer: D

D D – Answer: B– Answer: B

E E – Answer: A– Answer: A

Answers to Problem Answers to Problem QuestionQuestion

gen 3a sample questions. sample multi-choice questions

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