Question

Credit rating agencies assess reinsurers based on their:

a.

Balance sheets and historical technical results

b.

Market reputation and customer reviews

c.

Claims settlement track record

d.

Ability to meet foreign exchange requirements

Answer: (a).Balance sheets and historical technical results Explanation:Credit rating evaluation, previously done internally by insurers and brokers, is now augmented by agencies. These agencies perform credit rating based on the assessment of balance sheets and historical technical results of each reinsurance transaction.

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Q. Credit rating agencies assess reinsurers based on their:

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