Question
a.
RetrocessionWhen the reinsurer shares the liabilities of the insurer along with sum insured, premiums and claims in the same proportion as per agreement in the treaty.
b.
Quota share reinsuranceWhen the reinsurer only shares the liabilities of the insurer for premiums and claims.
c.
Facultative obligatory treatyWhen the reinsurer only shares the liabilities of the insurer for claims.
d.
Proportional reinsurance, if carefully structuredNone 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. Which of the following methods can assist in improving combined ratio?What is proportional reinsurance?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
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
Q. Why is the quota share method adopted for short-term specialized requirements rather than as a long-term arrangement?
View solution
Q. When is quota share reinsurance protection typically used by a newly established insurer?
View solution
Q. In the surplus method, who decides the limit of liability which can be retained on any one risk or class of risk?
View solution
Q. What is a "line" in a surplus treaty?What happens if the ceding insurer decides to retain only Rs. 3,00,000 for a particular risk under a surplus treaty?
View solution
Q. What is a "line" in a surplus treaty?
View solution
Q. What is a second surplus treaty?
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!
