Page 5 - CFPA-CII-Module W01-Examen blanc N°2-Qestions avec réponses
P. 5
13. Insurers use a large number of similar risks to forecast claims accurately, known as
a) General statistics
b) Common Pool
c) Homogenous Exposure
d) General Average
14. Where there is high frequency of loss there is usually low:
a) Severity
b) Causation
c) Occurrence
d) Maximisation
15. A typical Peril, shown in a household policy is:
a) Living in a flood plain
b) Escape of water
c) An insurance policy
d) High claim record
16. By applying the Law of Large Numbers, Insurers can:
a) Predict the final costs of claims in one year
b) Calculate accurately a no claims bonus
c) Calculate the premium income in one year
d) Gain statistical evidence for Business Interruption
17. Coinsurance exists where
a) One insurer carries the risk without excess
b) Two or more insurers share the same risk
c) Insurers pass the risk to other insurers
d) The client insures the whole risk themselves
18. A Limited liability company is a:
a) Partnership
b) Public body
c) Separate legal entity
d) Article of Association
5/21
