ACORD Certified Expert (ACE)

Question 1

What is the primary purpose of reinsurance in the US insurance market?

To replace primary insurance policies To transfer a portion of risk from the primary insurer to another insurer To regulate premium rates charged to policyholders To eliminate the need for underwriting

Correct Answer:

To transfer a portion of risk from the primary insurer to another insurer

Question 2

In a proportional reinsurance treaty, how are premiums and losses shared?

The reinsurer pays all losses above a fixed threshold Premiums and losses are shared in an agreed proportion between cedant and reinsurer The cedant retains all premiums and the reinsurer covers all losses Losses are shared equally regardless of premium allocation

Correct Answer:

Premiums and losses are shared in an agreed proportion between cedant and reinsurer

Question 3

Which reinsurance structure provides coverage only when aggregate losses exceed a specified retention?

Quota share treaty Surplus share treaty Aggregate excess of loss Facultative obligatory

Correct Answer:

Aggregate excess of loss

Question 4

What distinguishes a facultative reinsurance arrangement from a treaty arrangement?

Facultative covers an entire portfolio automatically; treaties cover individual risks Facultative is negotiated risk-by-risk; treaties cover a defined class of business automatically Facultative requires regulatory approval; treaties do not Facultative is only used for life insurance; treaties apply to property lines

Correct Answer:

Facultative is negotiated risk-by-risk; treaties cover a defined class of business automatically

Question 5

Which ACORD form is commonly used to submit reinsurance bordereau data?

ACORD 25 ACORD 75 ACORD 107 ACORD 810

Correct Answer:

ACORD 810

Question 1

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About this Exam

Prepare with the ACORD Certified Expert (ACE) practice quiz. This question bank includes 100 questions covering acord, expert, insurance, data, and standards. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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ACORD Certified Expert (ACE)

This practice set contains 100 questions from the matching question bank and focuses on acord, expert, insurance, data, and standards. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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ACORD Certified Expert (ACE)

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