Question

Which of the following factors can influence a direct insurer's retention limit?

a.

The age of the direct insurer

b.

The size of the company

c.

The quality of the reinsurer

d.

The financial status of the reinsurer

Posted under IC22 Life Insurance Underwriting

Answer: (b).The size of the company Explanation:Some of the factors that can influence a direct insurer's retention limit include the size of the company and its years of existence, the quality and experience of the underwriters, the surplus of the direct insurance company, and the quality of the business sourced by the distribution channels.

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Q. Which of the following factors can influence a direct insurer's retention limit?
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