Question

What is the advantage of resolving disputes through arbitration in reinsurance agreements?

a.

The arbitrators have insurance expertise and practical experience

b.

It allows for direct court action to be taken immediately

c.

It increases the liability of the reinsurers beyond agreed limits

d.

It protects the ceding insurer against errors and omissions

Answer: (a).The arbitrators have insurance expertise and practical experience Explanation:One advantage of resolving disputes through arbitration is that arbitrators, being insurance professionals, have insurance expertise and practical experience. This enables them to better understand the issues in dispute.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the advantage of resolving disputes through arbitration in reinsurance agreements?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the significance of specifying the place of arbitration in a reinsurance agreement?

Q. What is the purpose of the jurisdiction clause in a reinsurance agreement?

Q. What is the purpose of the set-off clause in a reinsurance agreement?

Q. Why is the set-off clause often challenged by creditors and others?

Q. What is the typical frequency for accounting in proportional reinsurance treaties?

Q. What is the timeframe for confirming accounts in the accounting clause?

Q. What provision may be included in the accounting clause for specified currencies?

Q. When can a revised rate of exchange be used for accounting in foreign currencies?

Q. What is the purpose of the currency clause in a reinsurance agreement?

Q. What is the purpose of loss advices in a reinsurance agreement?

Q. What is a 'cash loss request' in a reinsurance agreement?

Q. What is the purpose of the 'preliminary loss advice' in a reinsurance agreement?

Q. Who has the sole right to adjust, compromise, and settle claims in a reinsurance agreement?

Q. What expenses are the reinsurer liable for in a reinsurance agreement?

Q. Which of the following is designed to protect the ceding insurer against any inadvertent delays, errors or omissions?

Q. What does the "Business Covered: Attachment of cessions - proportional" clause deal with?

Q. When does the reinsurance apply according to the "Business Covered: Attachment of cessions - proportional" clause?

Q. What is the purpose of the "Business Covered: Attachment of cessions - proportional" clause for quota share reinsurance?

Q. Which risks are typically excluded by reinsurers in relation to the "Business Covered: Attachment of cessions - proportional" clause?

Q. What caused undue hardship to ceding insurers and their insured's in relation to terrorism and sabotage risks?

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!