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

Q. How can a reinsurance treaty be structured to help insurance companies cope with new business and other capital constraints?

View solution

Q. What is the advantage of freeing up reserves for an insurance company?

View solution

Q. How can knowledge sharing between the direct insurance company and the reinsurer be useful?

View solution

Q. Which of the following is NOT an advantage of reinsurance arrangements?

View solution

Q. How can reinsurance arrangements help in improving return on capital for a company?

View solution

Q. Which of the following is an example of how reinsurers extend help in underwriting of cases received by the direct insurer?

View solution

Q. What is the advantage of reinsurance in avoiding adverse selection?

View solution