Question

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

a.

The commission paid by the ceding insurer to agents and brokers

b.

The sum insured ceded by the ceding insurer

c.

The return premiums due under cancelled policies

d.

The premiums for any risks excluded from the treaty

Posted under IC85 Reinsurance Management

Answer: (b).The sum insured ceded by the ceding insurer Explanation:The reinsurance premium paid by the ceding insurer to the reinsurer(s) is a percentage of the original premium paid by the insured. The percentage paid to the reinsurer(s) is the same as the percentage of the sum insured ceded by the ceding insurer.

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