1. In this type of agreement, the ceding insurer and the reinsurer agree to share premiums and losses based on a percentage.

a.Excess of loss

b.Surplus share

c.Quota share

d.Reinsurance pool

2. In commercial real estate, the rates are adjusted based on the characteristics of the building and the rate making method used will be:

a.Schedule rating

b.Experience rating

c.Judgment rating

d.Retrospective rating

3. When estimating the loss reserve in ____________, the average value method is used to assign a loss value to each claim.

a.Car insurance

b.Professional liability insurance

c.Life insurance

d.Ocean marine insurance

4. _________ insurance contracts are long-term and their losses are highly predictable, therefor the insurers prefer to match the duration of the contracts with the maturity of investments.

a.Property

b.Liability

c.Life

d.Health

5. In determining insurance premiums, the __________ uses the insurance companys past loss experiences and available industry statistics.

a.Claims adjustor

b.Sales agent

c.Rate maker

d.Underwriter