Question

What is the purpose of the portfolio withdrawal calculation?

a.

To determine the net portfolio premium for the next year's reinsurers

b.

To estimate the reinsurance commission for the ceding insurer

c.

To calculate the unexpired exposure of each month's premiums

d.

To adjust the fixed percentage calculation for long or short term cessions

Answer: (a).To determine the net portfolio premium for the next year's reinsurers Explanation:The portfolio withdrawal calculation is used to determine the net portfolio premium that should be withdrawn and given to the next year's reinsurers.

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

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