Question

What does the cover note in reinsurance placement summarize?

a.

The terms of placement, premium, and participating underwriters

b.

The broker's consultation with the reinsurers worldwide

c.

The conditionalities on the slip negotiated by the intermediary

d.

The total written line of the intermediary's share of risk placement

Answer: (a).The terms of placement, premium, and participating underwriters Explanation:The cover note issued by the intermediary summarizes the terms of placement, premium, and the participating underwriters with their respective shares. It serves as a summary document for the reinsurance placement. Therefore, option a is the correct answer.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does the cover note in reinsurance placement summarize?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Why is it unwise to place too large a share of the treaty with a reinsurer?

Q. What is the importance of continuity in relationships with reinsurers?

Q. What type of reinsurance examination is typically conducted for higher surpluses and facultative reinsurance?

Q. What should be considered when selecting a reinsurer for the placement of top surplus?

Q. What is the purpose of arranging working covers on a per event basis and dovetailing them into the catastrophe cover?

Q. Why should one exercise caution when examining offers with lower rates from different reinsurers?

Q. What is the importance of keeping the structure of reinsurance arrangements and terms under constant review?

Q. What is the benefit of good reinsurance arrangements for the insurer?

Q. What is the main difference between direct placements and dealing through intermediaries?

Q. What is one of the challenges faced by intermediaries in the reinsurance market?

Q. What is the advantage of using intermediaries in a soft market?

Q. What is the common objective of both direct placements and dealing through intermediaries?

Q. As per market practice, the intermediary issues a cover note to the insurer. Which of the following is not included in it?

Q. What is the purpose of involving professional reinsurers and intermediaries in the programme design stage?

Q. Why do ceding insurers protect the experience of outward treaty in reciprocal reinsurance trading?

Q. In which lines of business is reciprocal reinsurance trading more commonly used?

Q. What is group underwriting in the insurance industry?

Q. How does market pooling work in the insurance industry?

Q. What is the role of an intermediary in reciprocal reinsurance negotiations?

Q. Can professional reinsurers provide 100% premium or profit reciprocity?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!