Acronym vs Area Test 4: 43-48

Question 1

Risk management tools include

Answer 1

MURDAC

Question 2

Reasons for reinsurance

Answer 2

SAD LIFES

Question 3

Reasons for ART include

Answer 3

DESCARTES

Question 4

Examples of ART contracts include

Answer 4

PISSI

Question 5

Managing options and guarantees

Answer 5

DOLI

Question 6

Management control systems

Answer 6

DOLA

Question 7

Why is capital needed?

Answer 7

Individuals: CuS
Companies: CLOFFS
Providers of financial services and products: REG CUSHION

Question 8

Capital management tools include:

Answer 8

BRIDES CC

Question 9

Internal restructuring

Answer 9

FAIR VaCS

Question 10

Three pillars of Solvency II:

Answer 10

QSD

Question 11

Reasons for monitoring experience:

Answer 11

PAUMPE OP

Question 12

Merits of PR:

Answer 12

Quota share: SHeRiL PC

Surplus: FHAM

Question 13

Merits of XoL reinsurance:

Answer 13

CaPESH PP

Question 14

Benefits of holding significant amounts of free capital:

Answer 14

FM PEER

Question 15

Reasons for underwriting include:

Answer 15

SAFER E

Question 16

Diversification can be achieved within the following:

Answer 16

RIGIDS OB

Question 17

If applicants do not meet the minimum underwriting standards, they may be offered special terms such as:

Answer 17

DARER

Question 18

Liability monitoring as a management control system

Answer 18

RACCo / CAR Co.

Question 19

Merits of a standard capital model

Answer 19

LE USA/ MECCAI USA

Question 20

Merits of a internal capital model

Answer 20

SWUAR CATU

/ SWARt CATHUN

Question 21

Requirement from data for monitoring :

Answer 21

RRASH VoC

Question 22

The process of monitoring a past experience:

Answer 22

D FaR
I CART
R

Question 23

Reasons why a (general) insurance company would want to monitor their experience

Answer 23

PPRInC F MaMa

Question 24

Reasons for investigating the appropriateness of the investment strategy:

Answer 24

FLIDA

Question 25

Why solvency position might have changed?

Answer 25

BEE