GIC Re Assistant Manager cheat sheet

Utmost good faith (uberrimae fidei) requires the proposer to disclose all material facts; non-disclosure or misrepresentation renders the contract voidable at the insurer's option.

Insurable interest must exist at proposal for life insurance but only at the time of loss for indemnity (property, marine, liability) insurance.

Indemnity principle: the insured is restored to pre-loss financial position, subject to sum insured, average clause and deductibles; valued policies are an exception.

Subrogation transfers the insured's recovery rights to the insurer after payment; it cannot exceed the amount paid and does not apply to life policies.

Contribution applies when two or more indemnity policies cover the same loss; each insurer pays rateably, typically by independent liability or sum-insured proportion.

Reinsurance types: facultative (case-by-case), treaty (obligatory), proportional (quota share, surplus) and non-proportional (excess of loss, stop loss).

Quota share: ceded premium and loss both share the same fixed percentage; surplus: cession is a multiple of the insurer's retention line.

Excess of loss recovery = (loss − deductible/priority) × 100/coverage %, capped at the limit of liability per risk or event.

IRDAI norms: insurers must retain at least the prescribed mandatory cession with the national reinsurer (GIC Re) and comply with order of preference for reinsurance placements.

Simple interest = P × R × T / 100; compound interest = P[(1 + R/100)^T − 1]; for half-yearly compounding use R/2 and 2T.

Effective annual rate = (1 + R/n)^n − 1; doubling under CI at R% takes approximately 72/R years (Rule of 72).

Profit/loss: SP = CP(1 ± gain%); successive discounts d1, d2 give net factor (1 − d1)(1 − d2), not d1 + d2.

Time-speed-distance: convert km/h to m/s by ×5/18; relative speed adds for opposite directions, subtracts for same direction.

Permutation vs combination: nPr = n!/(n−r)!; nCr = n!/[r!(n−r)!]; circular arrangements of n distinct objects = (n−1)!.

Probability: P(A∪B) = P(A) + P(B) − P(A∩B); independent events multiply; complementary rule P(not A) = 1 − P(A).

Averages and mixtures: alligation ratio = (mean − cheaper) : (dearer − mean); weighted average = Σwx/Σw.

Syllogism: apply Venn diagrams and the rules of distribution; 'some A are B' is convertible, 'all A are B' is not.

Data sufficiency and seating arrangement: fix the most constrained element first, then test each statement independently before combining.

Subject-verb agreement: each, every, either, neither, everyone and nobody take singular verbs; 'neither...nor' agrees with the nearer subject.

Articles: 'a' before consonant sounds, 'an' before vowel sounds (an hour, a university); 'the' for unique or previously specified nouns.

Tenses: present perfect (has/have + past participle) for past actions with present relevance; past perfect for the earlier of two past actions.

Prepositions of time: in + month/year, on + day/date, at + clock time; fixed collocations (comply with, consist of, depend on, prefer to).

Common confusables: affect (verb)/effect (noun), principal/principle, stationary/stationery, complement/compliment, its/it's.

Voice and speech: passive = object + be + past participle + by agent; reported speech shifts tense one step back and adjusts time/place words.

Cloze and error-spotting strategy: read the whole sentence for context, eliminate options by grammar first, then by collocation and tone.

Reading comprehension: locate the keyword in the passage, paraphrase rather than quote, and reject options that overstate or add unstated claims.

Medical underwriting: standard references include BMI, family history, smoking/alcohol status, pre-existing disease waiting periods, and PED definitions per IRDAI health-insurance norms.

Health claim documents typically include the claim form, hospital discharge summary, itemised bill, investigation reports, and pre-authorisation approval for cashless.

Actuarial core: premium = expected claims + expenses + risk margin + profit loading; loss ratio = incurred claims / earned premium.

IBNR (incurred but not reported) reserves are estimated using chain-ladder or Bornhuetter-Ferguson methods; solvency margin = available assets / required solvency margin.

IT in insurance: core systems include policy administration, claims management, and reinsurance/ceded-business modules; data protection obligations flow from the DPDP Act, 2023 and IRDAI cybersecurity guidelines.

Legal essentials: Insurance Act 1938, IRDAI Act 1999, Contract Act 1872 (offer, acceptance, consideration, capacity, free consent, lawful object).

Utmost good faith, insurable interest, indemnity, proximate cause, subrogation and contribution are the six cardinal principles tested in legal questions.

Motor: third-party liability is compulsory under the Motor Vehicles Act 1988; own-damage cover is optional; claims settlement timelines are prescribed by IRDAI.

Regulatory compliance: KYC/AML under PMLA, grievance redressal via the Insurance Ombudsman, and policyholder disclosure norms under the IRDAI (Protection of Policyholders' Interests) Regulations.