Question

What is surplus reinsurance?

a.

The original insurer decides what part of the original insurance he wishes to retain for his own account and reinsures the balance with a reinsurer.

b.

The reinsurer covers only a specific type of risk.

c.

The reinsurer provides coverage for all risks falling within the scope of the agreement.

d.

The reinsurer covers the entire liability of the insurer.

Posted under IC85 Reinsurance Management

Answer: (a).The original insurer decides what part of the original insurance he wishes to retain for his own account and reinsures the balance with a reinsurer. Explanation:In surplus reinsurance, the original insurer decides what part of the original insurance he wishes to retain for his own account and reinsures (cedes) the balance with a reinsurer.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is surplus reinsurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How are premiums and losses shared in surplus reinsurance?

View solution

Q. What is the ceding insurer’s retention in surplus reinsurance?

View solution

Q. Which of the following describes proportional reinsurance?

View solution

Q. Which of the following statements is true about surplus reinsurance?

View solution

Q. Which of the following methods can assist in improving combined ratio?

View solution

Q. Which of the following methods can assist in improving combined ratio?What is proportional reinsurance?

View solution

Q. What are the two types of proportional reinsurance?

View solution

Q. What is surplus reinsurance?

View solution

Q. What is the ceding insurer's retention in surplus reinsurance?

View solution

Q. How are the limits of surplus stated?

View solution

Q. What is probable maximum loss (PML)?

View solution

Q. What is the benefit of using PML as a basis for surplus reinsurance?

View solution

Q. What is Quota Share Reinsurance?

View solution

Q. What is Fixed Quota Share Reinsurance?

View solution

Q. How is the percentage of retention determined in Variable Quota Share Reinsurance?

View solution

Q. How are premiums and claims shared in Fixed Quota Share Reinsurance?

View solution

Q. How is Variable Quota Share Reinsurance graduated to align with the occupancy of risk?

View solution

Q. What is quota share reinsurance?

View solution

Q. How is the percentage of retention determined in fixed quota share reinsurance?

View solution

Q. Why are quota share treaties usually more profitable to reinsurers?

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!

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

IC85 Reinsurance Management

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

Life Sciences

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

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

UIDAI Aadhaar Supervisor Certification

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

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Electronics and Communication Engineering

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

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

Biochemistry

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