Question

What is the role of reinsurers in fixing retentions for engineering insurance?

a.

To prescribe the minimum level of retentions

b.

To eliminate the need for retentions

c.

To negotiate commission terms

d.

To provide technical assistance in matters of rating and other technical matters

Answer: (a).To prescribe the minimum level of retentions Explanation:Reinsurers may prescribe minimum level of retentions at which they would be comfortable to accept cessions.

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Q. What is the role of reinsurers in fixing retentions for engineering insurance?

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