Question

How is the percentage of retention determined in fixed quota share reinsurance?

a.

It varies based on the underwriter's judgement.

b.

It is determined as part of the reinsurance program design.

c.

It is calculated based on the ceding insurer's profitability.

d.

None of the above.

Answer: (b).It is determined as part of the reinsurance program design. Explanation:The percentage of retention in fixed quota share reinsurance is determined as part of the reinsurance program design.

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Q. How is the percentage of retention determined in fixed quota share reinsurance?

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