Question

What are the two types of proportional reinsurance?

a.

Surplus reinsurance and quota share reinsurance.

b.

Retrocession and treaty reinsurance.

c.

Facultative and obligatory treaty reinsurance.

d.

None of the above.

Posted under IC85 Reinsurance Management

Answer: (a).Surplus reinsurance and quota share reinsurance. Explanation:The two types of proportional reinsurance are surplus reinsurance and quota share reinsurance.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What are the two types of proportional reinsurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What options does a ceding insurer have when the sums insured on policies exceed the limits of a surplus treaty?

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!

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

Virology

Explore the captivating world of Virology with our specialized category. Dive into...

Corrosion Engineering

Master the art of preventing material deterioration with our Corrosion Engineering...

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Electronics and Communication Engineering

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

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...