PRMIA Exam 8004 Topic 4 Question 38 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 38
Topic #: 4

[All 8004 Questions]

The Fortress Re finite reinsurance model

Aallowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, and as the risks were spread out over time the annual premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability

Ballowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid annual premiums to cover these policies, and as the risks were spread out over the year the annual premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability

Callowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, and as the risks were spread out over time the future premiums were accounted for as current liabilities on the books of the pool members, giving a true impression of profitability

Dallowed Fortress to claim re-insurance claims payments from the finite reinsurers and paid premiums to cover these deals over a 5 year period, but as the risks were spread out over time the future premiums were not accounted for as current liabilities on the books of the pool members, thus giving a false impression of profitability

Show Suggested Answer

Suggested Answer: B

by Azalee at Oct 23, 2024, 07:18 PM

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Valentine

5 months ago

Wait, there's actually a 'best practice' for risk management? I thought it was just about crossing your fingers and hoping for the best!

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Elli

5 months ago

Hmm, I was tempted by B, but you're right, D covers all the bases. Can't go wrong with a holistic risk management framework.

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Julie

4 months ago

I agree, D covers all the important aspects of a strong Risk Management Infrastructure. It's crucial to have a well-rounded framework in place.

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Lenna

4 months ago

Yeah, D is definitely the most comprehensive choice. It's important to have a holistic approach to risk management.

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Gladys

5 months ago

I was thinking B too, but D seems like the best option. It covers everything.

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Adell

5 months ago

Agreed, D is the way to go. Siloes, professional development, and training for the whole organization - that's a well-rounded risk management setup.

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Franklyn

5 months ago

I think the correct answer is D. All of these are expected of the Risk Management Infrastructure. It's a comprehensive approach that aligns with best practices.

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