Q. What is the purpose of setting retention limits by management of an insurer?

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Q. Who approves the retention limits set out by the management of an insurer?

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

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Q. What is retention in practice a combination of?

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Q. What are the two types of retention required to be managed?

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Q. How is the per risk retention scaled down?

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Q. How is the per event retention managed?

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Q. Which of the following is a normal method of reinsurance in miscellaneous accident business?

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Q. ‘If the risk is not a very good risk the insurer may keep less and the amount to be reinsured will therefore increase in case of treaties without a line limitation.’ This is true for which of the following categories of reinsurance?

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Q. Which of the following types of insurance protects business debts of a firm which is dependent on a key individual for continuing its business?

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Q. Which of the following is correct with respect to per risk retention?

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Q. Which type of retention is managed through reasonable estimation of financial consequences and by allowing a catastrophe reserve for funds to accumulate and be available over the long term?

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