Question
a.
The reinsurer assumes liability for 100% of the estimated outstanding losses
b.
The reinsurer assumes liability for 90% of the estimated outstanding losses
c.
The reinsurer assumes liability for 50% of the estimated outstanding losses
d.
The reinsurer assumes liability for the actual payments made for outstanding losses
Posted under IC85 Reinsurance Management
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. How are the reinsurer's liabilities for outstanding losses determined in relation to the commencement date of reinsurance?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
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
Q. How is the unexpired exposure of each month's premium calculated?
View solution
Q. Which method provides a more accurate calculation of the net portfolio premium?
View solution
Q. What is the approximate percentage of the premium ceded to the treaty that works out as portfolio withdrawal?
View solution
Q. How does the calculation for unexpired risks in financial accounting differ from the portfolio withdrawal calculation?
View solution
Q. What is the purpose of the clean-cut method in reinsurance?
View solution
Q. What is portfolio loss withdrawal?
View solution
Q. What is portfolio loss entry?
View solution
Q. When is the clean-cut method typically followed?
View solution
Q. What happens to premium reserves in the clean-cut method?
View solution
Q. What is the range of interest that ceding insurers allow reinsurers in treaties with provision for retention of reserves?
View solution
Q. When is the interest credited to reinsurers in treaties with provision for retention of reserves?
View solution
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!
