Question

How do brokers settle balances due to reinsurers?

a.

They settle balances net of brokerage

b.

They include brokerage in the balances due

c.

They deduct brokerage from the ceding insurer's payments

d.

They send separate brokerage statements to the reinsurer

Posted under IC85 Reinsurance Management

Answer: (a).They settle balances net of brokerage Explanation:If balances are due to the reinsurer, brokers usually settle them net of brokerage.

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