Question

What is the method of cession?

a.

The process of negotiating a surplus treaty

b.

The process of calculating the amount of surplus to be ceded to a reinsurer

c.

The process of allocating surplus to multiple surplus treaties

d.

The process of selecting a reinsurer for a surplus treaty

Posted under IC85 Reinsurance Management

Answer: (c).The process of allocating surplus to multiple surplus treaties Explanation:The method of cession as the process of allocating surplus to multiple surplus treaties based on the size of the risk.

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Q. What is the method of cession?
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