Question

In the context of commission earned on ceded business, what decision has to be made?

a.

Whether to bear a risk by retaining more or passing the risk and earning a safe additional commission

b.

Whether to bear a risk by passing the risk and earning a safe additional commission

c.

Whether to retain more risk and earn a safe additional commission

d.

None of the above

Answer: (a).Whether to bear a risk by retaining more or passing the risk and earning a safe additional commission Explanation:In the context of commission earned on ceded business, the decision is between bearing a risk by retaining more or passing the risk and earning a safe additional commission.

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Q. In the context of commission earned on ceded business, what decision has to be made?

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