Q. When is facultative reinsurance generally used?

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Q. What is "facultative shopping"?

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Q. What is treaty reinsurance?

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

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Q. What is Catastrophe reinsurance?

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

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

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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 _______________.

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

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Q. How can reinsurers help with underwriting?

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

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

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

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

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

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

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

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Q. Which of the following is an example of how reinsurance can provide capital assistance to a direct insurance company?

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Q. What is a reinsurance treaty?

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Q. What do reinsurance treaties mainly cover?

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