Question

Is commission payable in non-proportional reinsurance?

a.

Yes, it is included in the reinsurance rate

b.

No, it is determined separately from the reinsurance arrangement

c.

Yes, it is paid by the reinsurer to the ceding insurer

d.

No, it is paid by the ceding insurer to the reinsurer

Posted under IC85 Reinsurance Management

Answer: (b).No, it is determined separately from the reinsurance arrangement Explanation:In non-proportional reinsurance, no commission is payable as part of the reinsurance arrangement. Factors such as commissions and expenses are typically taken into account when determining the rate for the treaty. However, brokerage may still be involved, but it is determined separately from the commission.

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Q. Is commission payable in non-proportional reinsurance?
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