Learning Outcome 8 Flashcards
1
Q
Which Pillar under Solvency II requires insurers to undertake a Own Risk and Solvency Assessment? A. Pillar 1 B. Pillar 2 C. Pillar 3 D. Lamfalussy process
A
B. Pillar 2
2
Q
Insurance company X has a security rating of BBB and insurance company Y a security rating of AAA Which of the following statements are correct?
A. Insurance company X will be able to charge a higher premium than insurance company Y to attract the same level of business
B. Insurance company Y will be able to charge a higher premium than insurance company X to attract the same level of business
C. The insurance company who charges the lowest premium will always attract the most business
D. . The insurance company who charges the highest premium will always attract the most business
A
B. Insurance company Y will be able to charge a higher premium than insurance company X to attract the same level of business
3
Q
Who recommends the security rating to the rating committee A. Chief executive B. Finance director C. Rating agency chief actuary D. Lead analyst
A
D. Lead analyst
