Question

What is needed for a ceding arrangement for reciprocal business?

a.

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

b.

A mix of risks producing a narrow based premium and giving a poor treaty balance, yielding fairly sustained negative results over a period of time

c.

A mix of risks producing a broad based premium and giving a poor treaty balance, yielding fairly sustained positive results over a period of time

d.

A mix of risks producing a narrow based premium and giving a good treaty balance, yielding fairly sustained positive results over a period of time

Answer: (a).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 Explanation:For a ceding arrangement for reciprocal 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.

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

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