Question

What is the purpose of ceding arrangements in reinsurance?

a.

To improve the combined local retentions

b.

To increase the cost of reinsuring

c.

To reduce the adequacy of cover for the gross account

d.

To generate good reciprocal outward business

Answer: (a).To improve the combined local retentions Explanation:Ceding arrangements are used to improve the combined local retentions and reduce the cost of reinsuring, while ensuring adequate cover for the gross account.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of ceding arrangements in reinsurance?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How should reinsurance cessations be evaluated for outward arrangements?What factors should be considered when determining the economics of each ceding arrangement?

Q. How should reinsurance cessations be evaluated for outward arrangements?

Q. What is needed for a ceding arrangement for reciprocal business?

Q. What is the purpose of reinsurance?

Q. Why is it necessary to review the working of reinsurance arrangements each year?

Q. What is the basis for determining the economics of each reinsurance arrangement?

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.

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?

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?

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?

Q. In a year of catastrophe, what must the programme design take care of?

Q. What is the purpose of the cash loss recovery facility in outward arrangements?

Q. What is the primary purpose of reinsurance?

Q. What is the correct approach for the evaluation of outward arrangements?

Q. In a year of catastrophe, the reinsurance programme should be designed in such a manner that ________________

Q. What is the basic role of reinsurance?

Q. What is the purpose of a cash loss recovery facility in outward arrangements?

Q. What is the basis for design and follow-up of a reinsurance programme?

Q. What is the purpose of a reinsurance programme for insurance business?

Q. What is the significance of follow-up in a reinsurance programme?

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!