Question

What is surplus reinsurance?

a.

When the reinsurer decides what part of the original insurance he wishes to retain for his own account and reinsures (cedes) the balance with a reinsurer.

b.

When 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.

c.

When the insurer retains all of the original insurance and the reinsurer only shares the liabilities of the insurer for premiums and claims.

d.

None of the above.

Posted under IC85 Reinsurance Management

Answer: (a).When the reinsurer decides what part of the original insurance he wishes to retain for his own account and reinsures (cedes) the balance with a reinsurer. Explanation:Surplus reinsurance is when the reinsurer decides what part of the original insurance he wishes to retain for his own account and reinsures (cedes) the balance with a reinsurer.

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