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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What policies are covered under a proportional treaty?

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!

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...

Highway Engineering

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

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Business Statistics

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

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...