Question

How is the percentage of retention determined in Variable Quota Share Reinsurance?

a.

It remains the same for all limits of sums insured.

b.

It varies for different limits of sums insured and increases with an increase in the limit of sums insured.

c.

It varies for different limits of sums insured and reduces with an increase in the limit of sums insured.

d.

None of the above.

Posted under IC85 Reinsurance Management

Answer: (c).It varies for different limits of sums insured and reduces with an increase in the limit of sums insured. Explanation:In Variable Quota Share Reinsurance, the percentage of retention varies for different limits of sums insured and reduces with an increase in the limit of sums insured.

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Q. How is the percentage of retention determined in Variable Quota Share Reinsurance?
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