Question

What is Mindip in non-proportional reinsurance?

a.

The final premium to be paid by the reinsured

b.

The deposit premium calculated by the reinsurer in advance

c.

The minimum premium prescribed for the cover

d.

The premium paid by the reinsured for a catastrophe cover

Posted under IC85 Reinsurance Management

Answer: (c).The minimum premium prescribed for the cover Explanation:Mindip stands for "Minimum & Deposit Premium" and is a term used in non-proportional reinsurance. The XL reinsurer does not know in advance what the final premium will be, and hence calculates the amount of premium to be paid in advance as deposit premium by the reinsured. Such deposit premium, when prescribed as the minimum premium for the cover, is termed as ‘Minimum & Deposit Premium’ (Mindip).

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Q. What is Mindip in non-proportional reinsurance?
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