Question

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

a.

There is a universal standard format for rendering reinsurance accounts.

b.

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

c.

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

d.

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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which part of the reinsurance account includes items such as premium and loss reserves, interest, and loss settlements?

View solution

Q. What is the purpose of reinsurance commission?

View solution

Q. How are premiums typically accounted for in reinsurance accounting?

View solution

Q. What is the primary advantage of using a flat rate of commission for reinsurance accounting?

View solution

Q. What is the purpose of using a sliding scale commission for reinsurance accounting?

View solution

Q. What is the purpose of the provisional commission in reinsurance accounting?

View solution

Q. What are earned premiums?

View solution

Q. What is deducted from earned premiums?

View solution

Q. What are incurred losses?

View solution

Q. What is added to incurred losses?

View solution

Q. What is the purpose of a provisional commission?

View solution

Q. How is the provisional commission determined?

View solution

Q. What does a sliding scale of commission aim to do?

View solution

Q. What is the purpose of the table of "Sliding Scale of Commission"?

View solution

Q. What is the purpose of overriding commission?

View solution

Q. How can the overriding commission payable by the reinsurer be calculated?What is brokerage in reinsurance?

View solution

Q. How can the overriding commission payable by the reinsurer be calculated?

View solution

Q. How is the percentage of brokerage payable determined?

View solution

Q. What is profit commission in reinsurance?

View solution

Q. What are the two types of profit commission statements?

View solution
View All MCQs on IC85 Reinsurance Management

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!

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Human Resource Management

Explore the dynamic field of Human Resource Management (HRM) with our dedicated...

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Basic Electrical Engineering

Master the fundamentals of Electrical Engineering with our specialized category....

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Human Anatomy and Physiology

Embark on a journey through the human body with our Human Anatomy and Physiology...

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...