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

View solution

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

View solution

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

View solution

Q. What constitutes the result of the third year in the calculation for a three-year average when a treaty is cancelled?

View solution

Q. What is the purpose of retaining a proportion of the ceded premium by the ceding insurer?

View solution

Q. What factors are typically agreed upon in relation to reserves in proportional treaties?

View solution

Q. What is the purpose of adjusting the loss reserve at anniversary dates or in quarterly accounts?

View solution

Q. How are settled claims typically handled in relation to the loss reserve?

View solution

Q. What is the purpose of establishing a loss reserve at a fixed rate of 100 or 90% of the outstanding losses?

View solution

Q. What does the ceding insurer do in relation to the reinsurer assuming liability for risks current at the commencement of the reinsurance agreement?

View solution

Q. How are the reinsurer's liabilities for outstanding losses determined in relation to the commencement date of reinsurance?

View solution

Q. What happens if the actual payments for outstanding losses differ from the amount credited to the reinsurer at the commencement of reinsurance?

View solution

Q. What is the alternative method to allowing the cessions to run to their natural expiry in the event of treaty cancellation?

View solution

Q. Why is the portfolio transfer or clean cut method preferred over the natural expiry method?

View solution

Q. What is the portfolio transfer method used for in reinsurance?

View solution

Q. Why is the portfolio transfer method not always used for valuing portfolios?

View solution

Q. What percentage of the premiums of the previous year is typically used for portfolio transfer in surplus and quota share treaties?

View solution

Q. How is the portfolio transfer percentage of 35% to 40% determined using the "50% Method"?

View solution

Q. What are the "eighth," "twelfth," and "twenty-fourth" systems used for in the calculation of portfolio premium?

View solution

Q. What is the purpose of the portfolio withdrawal calculation?

View solution