Question

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

a.

Percentage of premium to be retained, timing of retention and release, interest payable, and treatment upon termination

b.

Percentage of claims settled, timing of claim settlements, interest payable, and treatment upon termination

c.

Percentage of premium to be retained, timing of claim settlements, interest payable, and treatment upon termination

d.

Percentage of premium to be retained, timing of retention and release, treatment of outstanding losses, and interest payable

Answer: (a).Percentage of premium to be retained, timing of retention and release, interest payable, and treatment upon termination Explanation:Factors typically agreed upon in relation to reserves in proportional treaties include the percentage of premium to be retained, timing of retention and release, interest payable on reserves, and how reserves are treated upon termination.

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

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