Question

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?

a.

Settlement of claims by the ceding insurerTo ensure compliance with regulatory requirements

b.

Security level of reinsurersTo track the payment of claims by the reinsurer

c.

Premium payments made by the reinsurerTo assess the profitability of reinsurance arrangements

d.

Profit commissions earned from reinsurance treatiesTo maintain records of facultative reinsurance ceded and accepted

Answer: Security level of reinsurersTo ensure compliance with regulatory requirements Explanation:According to the Insurance Rules, information on the security level of reinsurers is required to be monitored and maintained. This helps in assessing the financial strength and reliability of the reinsurers with whom reinsurance treaties are entered into.Reporting the total placement to each reinsurer to the IRDA helps in ensuring compliance with regulatory requirements. It enables the regulatory authority to monitor the reinsurance activities of insurers and assess their adherence to the prescribed guidelines and regulations.

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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?

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