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ISR3701-25-EX06
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Monthly policies are ___________.a) quoted annually but paid in monthly installments.b) reviewed every month.c) immediately affected by changes in the underwriting philosophy of insurers.d) most common to the personal lines markets.CHOOSE THE CORRECT COMBINATION:
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An insurer enters into a quota share arrangement with the ceding insurer retaining 60% of any loss. How much will the reinsurer pay if the loss amounts to R40 000 under an R80 000 policy?
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Indicate the correct statement:
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An underwriter is requested to underwrite a tyre manufacturing plant. The sums insured are: Fire R50 000 000Loss of profits R30 000 000 The underwriter has a net line of R2 000 000 and can take an additional 50% if the risk involves Fire and Loss of profit. The underwriter has a nine-line surplus treaty.Under the above scenario …
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Mr. Maswanganyi insured his car, valued at R400 000, with Company X for R150 000 and Company Y for R250 000. Mr. Maswanganyi is involved in an accident and damage to his car amounts to R25 000. His claim, however, is repudiated due to some technical reasons. Company Y, however, decided to make an ex-gratia payment of R15 625 to Mr. Maswanganyi.BASED ON THE AFOREMENTIONED SCENARIO, INDICATE THE CORRECT STATEMENT.
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In terms of Business interruption insurance, the gross profit sum insured can be calculated on the following basis:
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South Africa has experienced several observable changes linked to climate change, including: an increase in the frequency of heatwaves, which leads to higher temperatures and prolonged periods of extreme heat, with implications for public health, agriculture and energy demand; changes in precipitation patterns, which result in more intense rainfall events and longer periods of drought in certain regions, posing challenges for water resource management, agriculture and ecosystem health; more intense storms and flash floods, which cause damage to infrastructure, the displacement of communities and economic losses, with urban areas particularly vulnerable due to inadequate drainage systems and rapid urbanisation; impacts on agricultural productivity through altered rainfall patterns, heat stress on crops and livestock, and increased pest and disease outbreaks, with implications for food security and rural livelihoods; and warmer temperatures and drier conditions, which increase the likelihood and severity of wildfires, particularly in the Western Cape and other fire-prone areas, posing risks to human lives, property and ecosystems. The increasing frequency and severity of extreme weather events due to climate change are putting upward pressure on non-life insurance premiums in South Africa. This trend is an example of which insurance principle?
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An insurer has a stop loss treaty for 80% of any access of claims over 70% of premiums in any one year up to 100%. The insurer has R20 000 000 premium income and losses amount to R18 000 000. The stop loss treaty will pay …
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Loss portfolio transfers …a. focus on timing risk.b. are often indispensable in mergers and acquisitions.c. avoid costly and lengthy run-off activities pertaining to losses.d. smooth the underwriting results of the insured.CHOOSE THE CORRECT COMBINATION:
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The principle of contribution …
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