Question
a.
The gross direct account is expected to sustain its loss ratio over a period of time.
b.
The gross direct account is expected to be subject to as wide a variation as the exposures permit.
c.
In good years the gross direct account will be relatively less and generate revenue for reinsurers.
d.
In bad years the gross direct account will be relatively higher and generate losses for reinsurers.
Posted under IC85 Reinsurance Management
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. The anticipated incurred loss ratio to the gross and net accounts in a class are very good indices for measuring the effect of the programme on retentions. Which of the following...
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. What is the purpose of ceding arrangements in reinsurance?
View solution
Q. How should reinsurance cessations be evaluated for outward arrangements?What factors should be considered when determining the economics of each ceding arrangement?
View solution
Q. How should reinsurance cessations be evaluated for outward arrangements?
View solution
Q. What is needed for a ceding arrangement for reciprocal business?
View solution
Q. What is the purpose of reinsurance?
View solution
Q. Why is it necessary to review the working of reinsurance arrangements each year?
View solution
Q. What is the basis for determining the economics of each reinsurance arrangement?
View solution
Q. In ________________ business, a mix of risks producing a broad based premium and giving a good treaty balance, yielding fairly sustained positive results over a period of time is needed.
View solution
Q. In order to eliminate the strain arising from immediate gross payments in respect of risks which are retained marginally, what is administered in all outward arrangements?
View solution
Q. What does the programme design address in addition to providing a stable experience to the net account and giving a sufficient balance at each year end?
View solution
Q. What helps the insurer to keep their well invested funds intact in situations where substantial gross payments need to be made immediately in respect of risks which are retained marginally?
View solution
Q. In a year of catastrophe, what must the programme design take care of?
View solution
Q. What is the purpose of the cash loss recovery facility in outward arrangements?
View solution
Q. What is the primary purpose of reinsurance?
View solution
Q. What is the correct approach for the evaluation of outward arrangements?
View solution
Q. In a year of catastrophe, the reinsurance programme should be designed in such a manner that ________________
View solution
Q. What is the basic role of reinsurance?
View solution
Q. What is the purpose of a cash loss recovery facility in outward arrangements?
View solution
Q. What is the basis for design and follow-up of a reinsurance programme?
View solution
Q. What is the purpose of a reinsurance programme for insurance business?
View solution
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!
