Question

Why might a reinsurer exclude certain risks from a treaty?What is a bordereaux?

a.

To protect the treaty result in their own interestA list detailing the risks ceded to the treaty

b.

To prevent the ceding insurer from writing risks in which they are not experiencedA list of risks excluded from the treaty

c.

Both a and bA list of risks that can be added to the treaty

d.

None of the aboveNone of the above

Posted under IC85 Reinsurance Management

Answer: Both a and bA list detailing the risks ceded to the treaty Explanation:A reinsurer may exclude risks or define the cover more clearly targeting to protect the treaty result in his own interest and thus prevent the ceding insurer from writing risks in which he is not experienced.A bordereaux is a list provided by the ceding insurer to the reinsurer, detailing the risks ceded to the treaty.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why might a reinsurer exclude certain risks from a treaty?What is a bordereaux?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What information is typically included in a bordereaux?

View solution

Q. How often is a bordereaux typically submitted to the reinsurer?

View solution

Q. Why might a reinsurer insist on a bordereaux for a newly established ceding insurer?

View solution

Q. In what cases might a reinsurer need to effect reinsurance in respect of their acceptance?

View solution

Q. What is the reinsurance premium paid by the ceding insurer to the reinsurer(s) a percentage of?

View solution

Q. Which of the following is NOT included in the reinsurance premium?

View solution

Q. What is ceding commission?

View solution

Q. How is the ceding commission calculated?

View solution

Q. What is the factor that determines the level of ceding commission?

View solution

Q. What is the definition of reinsurance premium?

View solution

Q. Which premiums are not included in the reinsurance premium?

View solution

Q. What is ceding commission?

View solution

Q. How is the ceding commission calculated?

View solution

Q. What is the purpose of a profit commission?

View solution

Q. What is ORC?

View solution

Q. What is the definition of reinsurance premium?

View solution

Q. What risks are excluded from the reinsurance premium?

View solution

Q. What is ceding commission?How is the ceding commission calculated?

View solution

Q. What is the quota share treaty?

View solution

Q. What is profit commission?

View solution
View All MCQs on IC85 Reinsurance Management

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!

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...