Question

What is ORC?

a.

Original reinsurance commission

b.

Overriding commission

c.

Operational risk charge

d.

None of the above

Answer: (b).Overriding commission Explanation:ORC stands for overriding commission. In certain classes of insurance business, where reinsurance premiums are paid on a "net" basis, that is, less original commission, the reinsurer will only allow an overriding commission, ORC, to cover the ceding insurer's original costs of acquisition.

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Q. What is ORC?

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