Question

Which of the following is correct with respect to market pool?

a.

In market pool, each insurer keeps his own net retention and thereafter cedes to the pool on priority basis up to defined limits.

b.

Market pool may be protected by suitable surplus share covers and redistributed back to the members.

c.

In market pool the ceding insurer cannot get further retention on his own risks through the pool.

d.

Market pools can be very useful where each member is ceding similar portfolio of risks to the pool.

Answer: (a).In market pool, each insurer keeps his own net retention and thereafter cedes to the pool on priority basis up to defined limits. Explanation:In a market pool, each insurer retains their own net retention and then cedes to the pool based on a priority basis up to defined limits. This means that each insurer contributes a portion of their business to the pool but retains their own net retention. Therefore, option a is the correct answer.

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Q. Which of the following is correct with respect to market pool?

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