Question
a.
A type of proportional reinsurance in which the reinsurer assumes a fixed amount of each risk.
b.
A type of proportional reinsurance in which the reinsurer assumes an agreed percentage of each risk and shares all premiums and losses accordingly with the reinsured.
c.
A type of non-proportional reinsurance in which the reinsurer pays a portion of the loss exceeding a certain amount.
d.
None 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. What is Fixed Quota Share Reinsurance?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
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
Q. In the proportional treaty, what is the meaning of a "line"?
View solution
Q. What is a second surplus treaty in reinsurance?
View solution
Q. What is a surplus treaty?
View solution
Q. What is the method of cession?
View solution
Q. What is the insurer's retention?
View solution
Q. What is a risk-attaching basis?
View solution
Q. What is loss-occurring basis?
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!
