Question

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

a.

The retention is of sufficient size

b.

The retention indicates risk bearing by the insurer

c.

Both a and b

d.

None of the above

Answer: (c).Both a and b Explanation:Reinsurers should ensure that the ceding insurer's retention is of sufficient size and indicative of risk bearing by the insurer.

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

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