Question

What are some strategic uses of facultative reinsurance?

a.

To reinsure hazardous risks not protected by treaty arrangements

b.

To reduce the liability to treaty reinsurers on certain risks

c.

To provide extra capacity

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:The strategic and widespread use of facultative reinsurance includes i. to reinsure hazardous risks not protected by treaty arrangements, ii. to reduce the liability to treaty reinsurers on certain risks, iii. to reduce the insurer's liability in a certain area, iv. to provide extra capacity and v. to obtain the reinsurer's advice on doubtful risks.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What are some strategic uses of facultative reinsurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Why do insurers obtain reinsurance coverage before accepting to insure a client in facultative reinsurance?

View solution

Q. What is the main reason for the decline of facultative reinsurance over time?

View solution

Q. What is the advantage of using facultative reinsurance to reinsure hazardous risks not protected by treaty arrangements?

View solution

Q. What is facultative reinsurance?

View solution

Q. What is the main advantage of facultative reinsurance?

View solution

Q. What are the limitations of facultative reinsurance?

View solution

Q. What are the considerations for a single Mega Risk Facultative Reinsurance Placement?

View solution

Q. Which of the following is correct with respect to facultative reinsurance?

View solution

Q. What is treaty reinsurance?

View solution

Q. What are the two ways in which treaty reinsurance may be transacted?

View solution

Q. What is the key difference between facultative and treaty reinsurance?Why are the administrative costs lower in treaty reinsurance than in facultative reinsurance?

View solution

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

View solution

Q. What is a formal treaty wording?

View solution

Q. Which of the following is not a characteristic of treaty reinsurance?

View solution

Q. Which of the following is typically described in a formal treaty wording for treaty reinsurance?

View solution

Q. How does an insurer achieve the desired level of reinsurance protection in treaty reinsurance?

View solution

Q. What is retrocession in reinsurance?

View solution

Q. What is the purpose of retrocession in reinsurance?

View solution

Q. What is Treaty Reinsurance?

View solution

Q. What are the two types of basis on which Treaty reinsurance may be transacted?

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!

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...