Question

Which of the following statements about reinsurance accounting formats is correct?

There is a universal standard format for rendering reinsurance accounts.

The financial account includes items related to the reinsurer's share of the technical result.

The technical account includes the balance brought forward from previous accounts.

Portfolio premium and loss withdrawals appear in the first quarter's account.

Posted under IC85 Reinsurance Management

Answer: (b).The financial account includes items related to the reinsurer's share of the technical result. Explanation:In reinsurance accounting, the financial account includes items such as the balance brought forward from previous accounts, premium and loss reserves, interest, loss settlements made, cash loss credit, and the final balance due for settlement. On the other hand, the technical account shows items related to the reinsurer's share of the technical result for the period. While there is no universal standard format for rendering reinsurance accounts, these basic features are commonly included.

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Q. Which of the following statements about reinsurance accounting formats is correct?

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