Question

How do insurers augment their retention?

a.

By keeping a share of the first surplus treaty for the net account

b.

By determining the retention

c.

By monitoring the total commitment zone-wise

d.

By drawing up and monitoring their total commitment zone-wise

Posted under IC85 Reinsurance Management

Answer: (a).By keeping a share of the first surplus treaty for the net account Explanation:Insurers augment their retention by keeping a share of their first surplus treaty for the net account, which can be increased progressively until it is time to revise the schedule of retentions.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How do insurers augment their retention?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of a catastrophe cover?

View solution

Q. What is the problem with placing catastrophe covers without proper data?

View solution

Q. What has made catastrophe covers progressively more exposed?

View solution

Q. Why are catastrophe covers normally split into layers?

View solution

Q. Why are reinsurers growing more insistent on receiving underwriting data?

View solution

Q. What is the basis for rating the first layer of catastrophe cover?

View solution

Q. What is the concern of reinsurers regarding the ceding insurer on catastrophe covers?What is the purpose of a second surplus treaty?

View solution

Q. What is the concern of reinsurers regarding the ceding insurer on catastrophe covers?

View solution

Q. What do reinsurers require regarding the portfolio of business ceded under Auto/Fac cover?

View solution

Q. What should be done when the Auto/Fac cover contains only peak risks and a large reinsurance capacity is required?

View solution

Q. What factors affect the rating of the first layer of catastrophe cover?

View solution

Q. What is the concern of reinsurers regarding catastrophe covers?

View solution

Q. What is the potential solution to the problem of catastrophe covers that reinsurers may consider?

View solution

Q. How is the surplus in excess of the first surplus treaty ceded?

View solution

Q. What is the maximum liability for the second surplus treaty determined by?

View solution

Q. When is it possible to build up a treaty with a reasonable balance?

View solution

Q. What information do reinsurers require when Auto/Fac cover contains only peak risks?

View solution

Q. What do reinsurers on higher surpluses and on facultative reinsurance examine?

View solution

Q. When may insurers resort to group underwriting?

View solution

Q. What is group underwriting?

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!

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Total Quality Management

Enhance your understanding of quality management with our Total Quality Management...

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....