Question

What is proportional reinsurance?

a.

A type of reinsurance where the reinsurer shares the liabilities of the insurer in the same proportion as agreed in the treaty.

b.

A type of reinsurance where the reinsurer covers only a specific type of risk.

c.

A type of reinsurance where the reinsurer provides coverage for all risks falling within the scope of the agreement.

d.

A type of reinsurance where the reinsurer shares only the premiums of the insurer, not the liabilities.

Posted under IC85 Reinsurance Management

Answer: (a).A type of reinsurance where the reinsurer shares the liabilities of the insurer in the same proportion as agreed in the treaty. Explanation:Proportional reinsurance is a type of reinsurance where the reinsurer shares the liabilities of the insurer in the same proportion as agreed in the treaty, along with sum insured, premiums, and claims.

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