Q. What are the two major types of reinsurance?

View solution

Q. In which type of reinsurance is the risk assessed on an individual basis?

View solution

Q. What information does the direct insurance company provide to the reinsurer in Facultative reinsurance?

View solution

Q. Can the reinsurer propose a different underwriting decision in Facultative reinsurance?

View solution

Q. What happens if the reinsurer accepts the risk in Facultative reinsurance?

View solution

Q. When is facultative reinsurance generally used?

View solution

Q. In which situations is facultative reinsurance used?

View solution

Q. What problems can arise if facultative business with the reinsurer is not renewed?

View solution

Q. What is facultative shopping?

View solution

Q. What is facultative reinsurance?

View solution

Q. When is facultative reinsurance generally used?

View solution

Q. What is "facultative shopping"?

View solution

Q. What is treaty reinsurance?

View solution

Q. What is the main difference between facultative and treaty reinsurance?

View solution

Q. What is Catastrophe reinsurance?

View solution

Q. What events are generally not covered under Catastrophe reinsurance?

View solution

Q. Why is Catastrophe reinsurance purchased by a direct insurance company for a large block of individuals and not on an individual basis?

View solution

Q. An insurance company may send a reinsurance case proposal to multiple reinsurers. The reinsurer who gives the most competitive offer is accepted by the insurance company to reinsure the case. This is known as _______________.

View solution

Q. What is one of the advantages of reinsurance arrangements?

View solution

Q. How can reinsurers help with underwriting?

View solution