Question

Under what conditions can a ceding insurer revert to accounting in original currencies?

a.

In the event of major changes in the currency situation

b.

In the event of restrictions on currency transfers

c.

In the event of fluctuations in exchange rates exceeding 10%

d.

All of the above

Answer: (d).All of the above Explanation:A ceding insurer can revert to accounting in original currencies if there are major changes in the currency situation, restrictions on currency transfers, or fluctuations in exchange rates exceeding 10%.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Under what conditions can a ceding insurer revert to accounting in original currencies?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Who is responsible for paying brokerage in reinsurance placements?

Q. How are statements of accounts and balances typically sent in reinsurance placements?

Q. How is brokerage usually indicated in statements of accounts?

Q. How do brokers settle balances due to reinsurers?

Q. What is the purpose of an accounts flow chart in inward accounts management?

Q. What is the purpose of maintaining a cash loss register in inward accounts management?

Q. What is the purpose of the treaty journal in accounts management?

Q. What is the role of the reserves journal in accounts management?

Q. What is the purpose of retrocession processing in accounts management?

Q. What is the role of the personal ledger in accounts management?

Q. What is the purpose of examining outstanding claims while closing annual accounts?

Q. Which legislation prescribes the format for preparing annual accounts in India?

Q. What is required as per the Insurance Act, 1938 in relation to annual accounts?

Q. What information is required to be monitored and maintained as per the Insurance Rules?

Q. What information is required to be monitored and maintained as per the Insurance Rules?What is the purpose of reporting total placement to each reinsurer to the IRDA?

Q. What is the purpose of convergence to International Financial Reporting Standards (IFRS)?

Q. Which organization has planned the convergence of Indian accounting standards with IFRS?

Q. What is the impact of convergence to IFRS on non-life insurance and reinsurance business?

Q. What is the requirement of IFRS regarding the presentation of reinsurance transactions?

Q. What disclosure requirements are required by IRDA for insurers under IFRS?

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!