Question

Which type of reinsurance accounts are normally rendered on an "Underwriting Year" basis?

a.

Fire and Accident Proportional Reinsurance

b.

Marine Proportional Reinsurance

c.

Non-Proportional Reinsurance

d.

Catastrophe Excess Reinsurance

Posted under IC85 Reinsurance Management

Answer: (b).Marine Proportional Reinsurance Explanation:The accounts for marine proportional reinsurance are normally rendered on an "Underwriting Year" basis. In these accounts, the premiums are usually shown net of acquisition costs, agency commission, brokerage, and any discount allowed to the insurer. Hence, the reinsurance commission will cover only the ceding insurer's expenses.

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Q. Which type of reinsurance accounts are normally rendered on an "Underwriting Year" basis?
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