Question

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

a.

Investigation of original business rate levels

b.

Detailed inspection of the risks by intermediaries

c.

Analysis of underwriting data and rate adequacy

d.

Examination of the financial soundness of the reinsurer

Posted under IC85 Reinsurance Management

Answer: (c).Analysis of underwriting data and rate adequacy Explanation:When placing higher surpluses and facultative reinsurance, reinsurers ask for detailed underwriting data and examine the adequacy of rate levels. This suggests that the analysis of underwriting data and rate adequacy is conducted in such cases. Therefore, option c is the correct answer.

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