Question

What is the importance of continuity in relationships with reinsurers?

a.

It ensures promptness and reasonableness from reinsurers.

b.

It helps in attaining the objectives of reciprocal reinsurance exchanges.

c.

It allows for detailed investigation of original business rate levels.

d.

It improves the underwriting data and risk improvements.

Answer: (b).It helps in attaining the objectives of reciprocal reinsurance exchanges. Explanation:Continuity of relationship with reinsurers is very important and that well-established intermediaries provide high value addition in this respect. The relationship with reinsurers is the basis for attaining the objectives of reciprocal reinsurance exchanges. Therefore, option b is the correct answer.

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

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