Question

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

a.

On gross premium

b.

On net premium

c.

On partial net premiums

d.

All of the above

Answer: (d).All of the above Explanation:The overriding commission payable by the reinsurer can be calculated on gross premium, net premium, or partial net premiums as stipulated in the treaty agreement.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How is the percentage of brokerage payable determined?

Q. What is profit commission in reinsurance?

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

Q. Is profit commission common in non-proportional treaties?

Q. What is the difference between a profit commission on an "Accounting Year" basis and an "Underwriting Year" basis?

Q. What reserves are mentioned in the profit commission statement on an "Accounting Year" basis?

Q. When are readjustment statements rendered in a profit commission on an "Underwriting Year" basis?

Q. What can be done with the outstanding liability of an "Underwriting Year" in profit commission calculations?

Q. What reserves are not included in the profit commission statement on an "Underwriting Year" basis?

Q. When does the ceding insurer prepare a statement to determine whether a treaty shows a profit or a loss?

Q. What is the purpose of aggregating the results of subsections under a treaty?

Q. In addition to aggregating results for subsections under a treaty, what other provision is sometimes made?

Q. What are the different formulas used to determine the basis for calculating the profit commission payable?

Q. What happens if the final result is a loss?

Q. How is the profit commission percentage determined when the final result is a profit?

Q. What happens to the result of the previous year's statement if it is a loss?

Q. In which scenario is no profit commission paid in the current year?

Q. What is the recommended practice for maintaining a breakdown of results for a loss carried forward for a limited period?

Q. How are the results calculated for treaties on a three-year average basis?

Q. When is a final profit commission statement rendered for a cancelled treaty?

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!