Q. In the placement of the second surplus treaty, what should be aimed for?

View solution

Q. What is the importance of the reinsurer's general business approach in the placement of higher covers?

View solution

Q. When might reinsurers agree to waive bordereaux for Auto/Fac covers?

View solution

Q. Which of the following treaty is used mainly for small accounts where the extra administrative burden of a surplus can be quite large?

View solution

Q. Which of the following measures is important for improving the national underwriting capacity and retentions?

View solution

Q. What is the primary purpose of participating in pools and ceding on an obligatory basis to national reinsurance organizations?

View solution

Q. Which entity is typically the recipient of obligatory cessions in several countries?

View solution

Q. How does participation in pools and exchange of reinsurance business benefit smaller insurers in specialized classes of business?

View solution

Q. What is one of the challenges faced by insurers when participating in pooling arrangements?

View solution

Q. Why do some countries adopt differential commission terms for insurers' cessions to pools?

View solution

Q. Why do some countries adopt differential commission terms for insurers' cessions to pools?Why do smaller insurers derive long-term benefits from participating in pools, despite potential sacrifices?

View solution

Q. What is the primary reason insurers accept the sacrifice involved in participating in pools?

View solution

Q. What is the purpose of group underwriting and retention?

View solution

Q. How does the formation of market pools differ from group underwriting?

View solution

Q. What is a key benefit of market pools?

View solution

Q. When can market pools be particularly effective?

View solution

Q. Why is it beneficial to involve professional reinsurers in reinsurance placements?

View solution

Q. What is a disadvantage of involving professional reinsurers in the first surplus treaty?

View solution

Q. How do professional reinsurers benefit ceding insurers?

View solution

Q. Why is it logical to provide professional reinsurers a share in basic treaties?

View solution