Question

When is the interest credited to reinsurers in treaties with provision for retention of reserves?

a.

In the quarter when the reserve is released

b.

In the quarter when the reserve is retained

c.

At the end of the treaty year

d.

At the beginning of the treaty year

Posted under IC85 Reinsurance Management

Answer: (a).In the quarter when the reserve is released Explanation:The interest is credited to reinsurers in the quarter when the reserve is released.

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Q. When is the interest credited to reinsurers in treaties with provision for retention of reserves?
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