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Flashcards in Learning Outcome 8 Deck (3)
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1

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




B. Pillar 2

2

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




B. Insurance company Y will be able to charge a higher premium than insurance company X to attract the same level of business

3

Who recommends the security rating to the rating committee
A. Chief executive
B. Finance director
C. Rating agency chief actuary
D. Lead analyst




D. Lead analyst