Question

For which of the following type of business will the accounting be rendered on an ‘Accounts Year’ basis?

a.

Fire and accident proportional reinsurance

b.

Fire and accident non proportional reinsurance

c.

Marine proportional reinsurance

d.

Marine non proportional basis

Posted under IC85 Reinsurance Management

Answer: (a).Fire and accident proportional reinsurance Explanation:The accounting for fire and accident proportional reinsurance is typically rendered on an 'Accounts Year' basis. In this type of reinsurance, the accounts are prepared based on a specific accounting year. The premiums are usually shown at original gross rates, and the reinsurance commission rate is then applied. This accounting approach allows for the proper assessment and evaluation of the financial performance and results of the fire and accident proportional reinsurance business over a specific accounting period.

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Q. For which of the following type of business will the accounting be rendered on an ‘Accounts Year’ basis?
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