Question

What is the basis of credit ratings?

a.

Information furnished by rated insurer or reinsurers

b.

Information obtained from government agencies

c.

Information provided by customers

d.

Information obtained from credit rating agencies in other countries

Answer: (a).Information furnished by rated insurer or reinsurers Explanation:Credit ratings are based on information provided by the rated insurer or reinsurer themselves. The credit rating agencies may also obtain additional information from other reliable sources to assess the financial strength and creditworthiness of the insurer or reinsurer.

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Q. What is the basis of credit ratings?

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