Question
a.
Treaty reinsurance involves higher administrative costs than Facultative reinsurance.
b.
Treaty reinsurance involves lower administrative costs than Facultative reinsurance.
c.
Both Treaty and Facultative reinsurance involve similar administrative costs.
d.
None of the above.
Posted under IC85 Reinsurance Management
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. What is the advantage of Treaty reinsurance over Facultative reinsurance in terms of administrative costs?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. ABC is a reinsurance company. It gets into a contract with another reinsurance company: XYZ Reinsurance Co. Ltd. Such contracts between two reinsurance companies are known as _______________
View solution
Q. What is Facultative Obligatory Treaty?
View solution
Q. Is Facultative Obligatory Treaty a common type of reinsurance contract?
View solution
Q. Why is the ceding commission for Facultative Obligatory treaties progressively less than the quota share and surplus treaties?
View solution
Q. For what purposes is Facultative Obligatory Treaty used?
View solution
Q. ________________ is a contract of reinsurance whereby the ceding insurer may cede risks of any agreed class of insurance which the reinsurer must accept if ceded.
View solution
Q. What is the purpose of a reinsurance contract?How many ways can a reinsurance contract be arranged?
View solution
Q. What is the purpose of a reinsurance contract?
View solution
Q. What is the difference between proportional and non-proportional reinsurance?
View solution
Q. What is facultative reinsurance?
View solution
Q. Can facultative reinsurance be obtained before accepting to insure a client?
View solution
Q. What is treaty reinsurance?
View solution
Q. What is retrocession?
View solution
Q. Which of the following forms of reinsurance, reinsures risks on individual basis?
View solution
Q. In which of the following reinsurance contracts does the ceding insurer have the option to cede and the reinsurer have the option to accept a specific risk of a specific insured?
View solution
Q. In which of the following reinsurance contract insurer needs to obtain reinsurance coverage before accepting to insure a client?
View solution
Q. Which of the following forms of reinsurance is used to arrange automatic additional capacity for the surplus after exhausting the existing automatic arrangements for reinsurance cessions?
View solution
Q. Which of the following forms of reinsurance is used to facilitate writing of high value exposures or to deal with high accumulation?
View solution
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!