Question

How should reinsurance cessations be evaluated for outward arrangements?

a.

By evaluating the risks on the basis of their loss ratios

b.

By grouping the risks into their types

c.

By assessing the commissions obtained under each arrangement

d.

By studying the additional infrastructure involved in its administration

Answer: (a).By evaluating the risks on the basis of their loss ratios Explanation:Reinsurance cessations for outward arrangements should be evaluated by assessing the composition of risks ceded to each arrangement on the basis of their loss ratios.

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

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