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

Q. In which lines of business is reciprocal reinsurance trading widely prevalent?How does premium reciprocity vary based on profitability in reciprocal reinsurance trading?

View solution

Q. What is a potential danger in accepting a large premium reciprocity from a treaty with low average profitability?

View solution

Q. What are the advantages of larger premium reciprocity for the ceding insurer?

View solution

Q. What should be done to bring down the net profit ceded when accepting a large premium reciprocity?

View solution

Q. What impact should be considered when examining the terms of a treaty exchange through an intermediary?

View solution