Q. Who approves the retention limits in an insurance company?

View solution

Q. Are there any clearly defined formulas or rules to enable an insurer or reinsurer to decide on their retention?

View solution

Q. What is the basis for implementing reinsurances as arranged?

View solution

Q. What is the basis for implementing reinsurances as arranged?Who determines the retention for each policy issued by an insurer?

View solution

Q. Is there a correct retention level for an insurer or reinsurer?

View solution

Q. Who has a different subjective assessment of the acceptable level of retention in an insurer's office?

View solution

Q. What is the impact of setting low retention limits?

View solution

Q. What is the basis for implementing reinsurances?

View solution

Q. What factors influence retention in insurance?

View solution

Q. What is the aim of determining the degree of acceptable fluctuation in a portfolio?

View solution

Q. The concept of balance in reinsurance refers to:

View solution

Q. The reinsurance manager must establish his retention and reinsurance program to:

View solution

Q. Retention is assessed in the light of the need to:

View solution

Q. The concept of an optimum retention refers to:

View solution

Q. What is the purpose of setting cash loss limit for proportional reinsurance arrangements?

View solution

Q. What is the primary goal of every insurer with respect to their capital?

View solution

Q. Which type of investment is likely to yield higher interest but may result in illiquid asset or loss of higher interest due to premature closure?

View solution

Q. Why is investment in liquid assets important for insurers?

View solution

Q. Why may it not be desirable to sell stocks and shares to pay for a claim?

View solution

Q. What is the importance of the management weighing the alternatives to arrive at the retention which represents the best solution for the insurer?

View solution