ISR 3701
Assignment 2
Semester 2
(711854)
, Question 1
Glass insurance …
1 provides no cover for plate glass shop counters
2 covers the cost of boarding up windows after a loss
3 provides no cover for mirrors
4 is not subject to average
See section 9.3.7 in the prescribed book. Glass insurance covers the cost of boarding up windows
after a loss.
Question 2:
Indicate the correct statements:
a. The solvency margin of a company is represented by the capital from shareholders and free
reserves of the company.
b. Policyholders usually prefer higher solvency margins.
c. Higher solvency margins indicate a higher utilisation of resources.
d. Shareholders usually prefer higher solvency ratios.
Choose the correct combination:
1 a, b, c
2 a, b
3 a, d
4 b, c
See section 7.2.3 in the prescribed book. The correct statements are: - The solvency margin of a
company is represented by the capital from shareholders and free reserves of the company. -
Policyholders usually prefer higher solvency margins.
Assignment 2
Semester 2
(711854)
, Question 1
Glass insurance …
1 provides no cover for plate glass shop counters
2 covers the cost of boarding up windows after a loss
3 provides no cover for mirrors
4 is not subject to average
See section 9.3.7 in the prescribed book. Glass insurance covers the cost of boarding up windows
after a loss.
Question 2:
Indicate the correct statements:
a. The solvency margin of a company is represented by the capital from shareholders and free
reserves of the company.
b. Policyholders usually prefer higher solvency margins.
c. Higher solvency margins indicate a higher utilisation of resources.
d. Shareholders usually prefer higher solvency ratios.
Choose the correct combination:
1 a, b, c
2 a, b
3 a, d
4 b, c
See section 7.2.3 in the prescribed book. The correct statements are: - The solvency margin of a
company is represented by the capital from shareholders and free reserves of the company. -
Policyholders usually prefer higher solvency margins.
