Question

Can quota share and surplus methods be used together in a reinsurance treaty?

a.

Yes, they are often used in combination to protect a particular class of insurance business

b.

No, they are mutually exclusive and cannot be combined in a single treaty

c.

Only in certain countries or jurisdictions

d.

It depends on the size and nature of the risks being insured

Answer: (a).Yes, they are often used in combination to protect a particular class of insurance business Explanation:Quota share and surplus methods can be used in combination to provide further protection to a particular class of insurance business.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Can quota share and surplus methods be used together in a reinsurance treaty?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the difference between net and gross lines in surplus treaty agreements?

Q. In a combined quota share and surplus treaty, what is the purpose of the ceding insurer's retention under the quota share treaty?

Q. When arranging a surplus treaty agreement in conjunction with a quota share treaty, why is it important to determine whether the surplus treaty is based on net or gross lines?

Q. _____________ is an automatic reinsurance agreement whereby the ceding insurer is bound to part with a fixed percentage of every risk written by it.

Q. What is proportional reinsurance?

Q. What is surplus reinsurance?

Q. What is bordereaux?

Q. What is the quota share treaty?

Q. What is the liability of the reinsurer under proportional treaty?

Q. In surplus reinsurance, a ceding insurer’s retention is known as ___________.

Q. In which of the following methods does the percentage of retained sum insured vary for different limits of sums insured and reduce with increase in the limit of sum insured?

Q. Which of the following details are not included in a list of bordereaux?

Q. In the Treaty, as a ‘document of agreement’, which of the following countries are normally excluded while listing territorial scope?

Q. Which of the following is incorrect with respect to reinsurance premium?

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!