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).

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is Mindip in non-proportional reinsurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is ultimate net loss?

View solution

Q. What types of expenditure are included in the calculation of ultimate net loss?

View solution

Q. What is the ideal level of retention for excess of loss cover?

View solution

Q. What is the difference between retention per risk and retention per event?

View solution

Q. What is the main intention behind the calculation of a suitable rate for a reinsurer?

View solution

Q. What are the factors that affect the rate for excess of loss covers?

View solution

Q. How does the retention of the reinsured affect the rate for excess of loss covers?

View solution

Q. How does the range of insurance business covered affect the rate for excess of loss covers?

View solution

Q. What are the types of risk insured and the size of the sum insured that affect the rate for excess of loss covers?

View solution

Q. How does the lower retention of the reinsured affect the rate?

View solution

Q. How does the range of insurance business covered affect the rate?

View solution

Q. What is the importance of past experience to the reinsurer?

View solution

Q. What is Burning Cost?

View solution

Q. What is Burning Cost?What are Incurred But Not Reported (I.B.N.R.) claims?

View solution

Q. What is the basis used for all types of excess of loss treaties?

View solution

Q. What is the meaning of Rate on Line?

View solution

Q. Why are catastrophe covers unsuitable for the burning cost method of rating?

View solution

Q. What does the Rate on Line indicate?

View solution

Q. What is an Incurred But Not Reported (I.B.N.R.) claim?

View solution

Q. What are the main factors in rating a catastrophe cover?

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!

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...

Business Statistics

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

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...

Engineering Materials

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

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....