Question
An insurance company enters into an agreement with
another insurer to transfer a portion of its risk portfolio relating to catastrophic losses. This agreement includes terms for premium sharing and claim liability distribution. What is this practice known as, and how does it impact solvency?Solution
Reinsurance helps reduce risk concentration, thereby improving solvency by transferring part of the risk to other insurers.
Select the word which means the same as the group of words given.
Something causing shock or dismay
Person who finds it difficult to go to sleep
Select the most appropriate meaning of the given word.
Ambiguous
He denied that he had not forged my signature.
 Fill in the blanks with the appropriate antonym of the word in Italic from the options given:
The prosperous businessman fell on _______ time...
Select the most appropriate opposite of the given COMPLIMENTATY
The highest point
In each of the following questions, out of the 4 alternatives, choose the one which best expresses the meaning of the given word.
Pragmatic
Match the idioms in List-I with their meanings in List-II:
Fear of people or society
