Q. What should reinsurers ensure regarding the ceding insurer's retention?

View solution

Q. What is the reason behind progressively reducing commission terms for cessions at higher level surpluses?

View solution

Q. What is the reason behind progressively reducing commission terms for cessions at higher level surpluses?Why do reinsurers prefer securing a waiver of reserves in treaties?

View solution

Q. What is the benchmark for assessing a country's financial ability to honor transactions?

View solution

Q. What does a Standard & Poor rating of BBB indicate for a country and its businesses?

View solution

Q. Why is exchange rate fluctuation considered a major consideration in reinsurance transactions?

View solution

Q. What should be considered when assessing the tax system for reinsurance transactions in various countries?

View solution

Q. What is the primary purpose of a surplus treaty in reinsurance?

View solution

Q. When is a quota share treaty typically used?

View solution

Q. What is the characteristic of a variable quota share treaty?

View solution

Q. What is the purpose of placing business facultatively in reinsurance?

View solution

Q. How does a Risk Excess cover operate?

View solution

Q. What is the purpose of a facultative obligatory treaty?

View solution

Q. Which type of treaty provides reinsurance protection on a layered basis?

View solution

Q. How are the lower layers of an excess of loss treaty rated?

View solution

Q. What does a stop loss ratio reinsurance arrangement aim to protect?

View solution

Q. Why do ceding insurers value reciprocal reinsurance trading?

View solution

Q. What are the benefits derived from a reciprocal exchange of treaties?

View solution

Q. Which type of insurers are able to exchange business against their first surplus property treaty?

View solution

Q. In which lines of business is reciprocal reinsurance trading widely prevalent?

View solution