Question

What is the meaning of "statutory cessions"?

a.

A type of reinsurance arrangement

b.

Ceding of a fixed percentage of insurance business by every insurer

c.

Compulsory cession of business to foreign reinsurers

d.

Allocation of cessions equally between two reinsurers

Answer: (b).Ceding of a fixed percentage of insurance business by every insurer Explanation:Statutory cessions mean that every insurer is required by law to cede a fixed percentage of their insurance business to approved Indian reinsurers.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the meaning of "statutory cessions"?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of the Reinsurance Pools in India?

Q. Which two Indian reinsurers were approved for statutory cessions?

Q. What is the main reason for the need for reinsurance in India?

Q. What was the first professional reinsurance insurer formed in India and when was it established?

Q. Which types of insurance business were required by statute to be ceded by every insurer in India in 1961?

Q. Which company became the Indian reinsurer after nationalisation?

Q. What was the aim of the market Reinsurance Programme?

Q. How did each of the four subsidiary companies handle their reinsurance cessions?

Q. What does SWIFT stand for?

Q. What was the attractive capacity offered by SWIFT on the sum insured basis?

Q. Which security rating agency gave SWIFT an "A" rating?

Q. Who is vested with the authority of regulating and controlling the conduct of insurance business in India?

Q. What is one of the key goals of regulations for reinsurance after liberalisation?

Q. Who can define their inward reinsurance underwriting philosophy after liberalisation?

Q. What was the main objective of the market Reinsurance Programme after nationalisation?

Q. What was the capacity of SWIFT on a Probable Maximum Loss (PML) basis?

Q. What is the role of IRDA in regulating reinsurance in India?

Q. What is the maximum percentage of all premium ceded overseas that can be received by one reinsurer rated as per regulations?

Q. What was the rating of SWIFT security by Standard and Poor?

Q. Who is responsible for regulating and controlling the conduct of insurance business in India?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!