Question

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

a.

Limit fluctuations to a degree that is acceptable

b.

Eliminate all fluctuations in the portfolio

c.

Increase retention proportionately as the portfolio grows

d.

Seek diminution in fluctuations in the portfolio

Answer: (a).Limit fluctuations to a degree that is acceptable Explanation:The reinsurance manager must establish his retention and reinsurance program in such a way as to limit the fluctuations to a degree that is acceptable.

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

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