Question

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

a.

The limit of liability which the ceding insurer wishes to retain on any one risk or class of risks.

b.

The amount of premium paid by the ceding insurer.

c.

The amount of loss incurred by the ceding insurer.

d.

The maximum limit of liability for the reinsurer.

Posted under IC85 Reinsurance Management

Answer: (a).The limit of liability which the ceding insurer wishes to retain on any one risk or class of risks. Explanation:In surplus reinsurance, the ceding insurer’s retention is the limit of liability which the ceding insurer wishes to retain on any one risk or class of risks. This limit is decided by the ceding insurer.

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