Question

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

a.

Specialized classes of insurance with a risk of accumulation

b.

When the surplus ceded is so large that the reinsurer himself may need to effect reinsurance in respect of his acceptance

c.

Both a and b

d.

None of the above

Posted under IC85 Reinsurance Management

Answer: (c).Both a and b Explanation:In cases where there is a risk of accumulation in specialized classes of insurance, or when the surplus ceded is so large that the reinsurer may need to effect reinsurance in respect of their acceptance, the reinsurer expects detailed advice to enable them to manage their own risk exposure. This suggests that both of these conditions could lead a reinsurer to need to effect reinsurance in respect of their acceptance.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What is the formula to calculate profit to the treaty?

View solution

Q. When does the reinsurer's liability begin under a proportional treaty?

View solution

Q. What happens if a loss occurs before the cession was made under a proportional treaty?

View solution

Q. When does a proportional treaty begin?

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!

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Fluid Mechanics

Unlock the mysteries of fluids and their behavior with our Fluid Mechanics category....

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

Enzyme Technology

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