GIC Re Assistant Manager key terms

The amount a policyholder pays an insurer, in a lump sum or instalments, in exchange for the cover promised under an insurance contract. It funds claims, expenses, and profit margin.

The maximum amount the insurer agrees to pay under a policy for a covered loss. It usually represents the value of the insured interest and caps claim settlement.

The portion of a covered loss that the policyholder must bear before the insurer pays. It reduces small claims and moral hazard, and lowers the premium.

The principle that a claim payment restores the insured to roughly the same financial position as before the loss, no better and no worse. It prevents profit from insurance.

A financial or legal relationship such that the insured benefits from the continued existence of the subject matter and suffers loss if it is damaged. It is required for a valid contract.

The duty on both insurer and insured to disclose all material facts relevant to the risk fairly and fully. Breach can allow the other party to avoid the contract.

Any information that would influence a prudent insurer's decision on whether to accept a risk, or on the terms and premium charged. Non-disclosure can void cover.

The process of assessing a proposed risk, deciding whether to accept it, and setting the terms, premium, and conditions. It matches price to expected loss.

Insurance bought by an insurer to transfer part of its risk portfolio to another insurer, the reinsurer. It protects solvency and supports growth in large or volatile risks.

The portion of risk that a cedent insurer transfers to a reinsurer under a reinsurance agreement. The term also describes the act of transferring that risk.

The amount or share of risk that the original insurer keeps for its own account after ceding part to reinsurers. It is set by capital, appetite, and treaty terms.

A standing agreement under which the reinsurer automatically accepts all risks falling within a defined class and criteria, without case-by-case negotiation. It covers a whole portfolio.

Reinsurance negotiated and accepted separately for each individual risk, giving the reinsurer the right to decline. It suits large, unusual, or non-standard exposures.

A reinsurance arrangement where cedent and reinsurer share premium and losses in agreed fixed proportions, such as quota share or surplus. The reinsurer follows the original terms.

A proportional reinsurance treaty in which the reinsurer takes a fixed percentage of every risk in the covered class, receiving the same percentage of premium and paying the same share of losses.

A proportional treaty where the cedent retains a fixed line per risk and cedes the amount above that retention, up to a stated number of lines, in proportion.

A non-proportional reinsurance cover where the reinsurer pays the part of each loss above an agreed retention, up to a limit. It protects against large single losses or events.

A non-proportional cover that responds when the cedent's aggregate losses in a period exceed an agreed percentage of premium or another basis, protecting the underwriting result.

A risk shared by two or more insurers, each accepting a stated percentage of the sum insured and premium. Also describes the insured's share of loss under some health policies.

The insurer's right, after paying a claim, to step into the insured's shoes and recover the loss from the party legally responsible. It supports the principle of indemnity.

The right of an insurer that has paid a claim to recover proportionate shares from other insurers covering the same interest against the same peril. It prevents double recovery.

The excess of an insurer's admissible assets over its liabilities, required by the regulator as a buffer against adverse experience. It signals ability to meet obligations.

Losses that have occurred but have not yet been reported to the insurer by the valuation date. Reserves for these claims are estimated statistically.

Incurred claims divided by earned premium, usually expressed as a percentage. It measures claims cost against premium and is a core indicator of underwriting performance.

The sum of the loss ratio and the expense ratio. A figure below 100 percent indicates an underwriting profit; above 100 percent indicates an underwriting loss.

A quantitative topic requiring comparison of two quantities and solution of problems where four quantities are in proportion. Typical exam items involve partnership shares, mixtures, and scale.

A method of expressing a number as a fraction of one hundred. Exam problems involve successive changes, profit and loss, and comparisons of quantities.

Simple interest is charged only on the principal; compound interest is charged on principal plus accumulated interest. Questions test formula application and comparison over periods.

The relationship that distance equals speed multiplied by time. Exam items cover relative speed, trains, boats and streams, and average speed over unequal segments.

Counting methods for arrangements where order matters and selections where it does not. Questions test factorial notation, restrictions, and probability applications.

The numerical measure of how likely an event is, from zero to one. Exam items cover independent and mutually exclusive events, conditional probability, and dice or card problems.

Reading and analysing information presented in tables, bar charts, line graphs, or pie charts, then answering comparison, percentage, and average questions on it.

A reasoning topic in which conclusions are tested against given statements using formal logic rules. Valid conclusions follow necessarily; others are rejected.

A reasoning topic requiring deduction of family relationships from statements or coded descriptions. Candidates map generations and genders to answer accurately.

An English section task requiring careful reading of a passage followed by questions on main idea, inference, vocabulary in context, and tone. Accuracy depends on close reading.

A passage with words or phrases removed, to be filled from given options so that grammar and meaning fit. It tests vocabulary, collocation, and contextual grammar.

An English question type where sentences of a paragraph are given out of order and must be rearranged into a coherent sequence using connectors, pronouns, and logical flow.

An English question type where a sentence is divided into parts and the candidate identifies the grammatically incorrect part, testing rules of agreement, tense, and usage.

The Insurance Regulatory and Development Authority of India, which licenses insurers and intermediaries, frames regulations, and protects policyholders. Candidates must know its core functions and powers.

The statute establishing and governing the central bank, covering its functions, monetary policy, and regulation of banking. Legal-stream questions test key provisions and amendments.

Core requirements for a valid contract under the Indian Contract Act, 1872: offer, acceptance, consideration, capacity, free consent, lawful object, and enforceability. Insurance contracts apply these rules.

The risk that an insured behaves less carefully, or exaggerates a claim, because insurance exists. Underwriters counter it with deductibles, exclusions, and claims investigation.