Question

What are the functions of reinsurance?

a.

Providing increased capacity

b.

Providing stabilisation of operating results

c.

Reinforcing the underwriter's attempts to establish an account which is homogeneous in both size and quality of risk

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:The functions of reinsurance include providing increased capacity, stabilising operating results, and reinforcing the underwriter's attempts to establish an account which is homogeneous in both size and quality of risk.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What are the functions of reinsurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What risks can reinsurance help insurers accept?

View solution

Q. What is the function of reinsurance in providing increased capacity?

View solution

Q. Why is financial stability important for insurers?

View solution

Q. What is the fundamental principle of insurance?

View solution

Q. How does reinsurance help in ensuring financial stability for insurers?

View solution

Q. What types of risks are particularly important for insurers to protect against?

View solution

Q. What can cause major fluctuations in claims costs for an insurer?

View solution

Q. What is the purpose of reinsurance in insurance business?

View solution

Q. What are the factors that can cause major fluctuations in claims costs?

View solution

Q. What is the basic principle of spread of risks?

View solution

Q. What is the purpose of arranging an excess of loss reinsurance protection?

View solution

Q. How can a well-planned reinsurance program ensure compliance of solvency norms?

View solution

Q. What is the function of excess of loss reinsurance protection?

View solution

Q. How does reinsurance achieve a wider spread of risks?

View solution

Q. What is the aim of the basic principle of spread of risks?

View solution

Q. How can a well-planned reinsurance programme ensure long term profitability?

View solution

Q. What is the analogy used by Dr. F.L. Tuma to describe the function of reinsurance?

View solution

Q. What is the purpose of reinsurance?

View solution

Q. What is the function of reinsurance?

View solution

Q. What are the advantages of reinsurance?

View solution
View All MCQs on IC85 Reinsurance Management

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!

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Mass Transfer

Delve into the science of Mass Transfer with our specialized category. Explore...

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

IC85 Reinsurance Management

Gear up for success in the Insurance Institute of India (III) examination with IC85...

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...