Question

How are finite risk solutions typically written?

a.

By multiple reinsurers sharing the risk

b.

By pooling assets of multiple insurers

c.

By a single reinsurer

d.

By involving capital markets

Answer: (c).By a single reinsurer Explanation:Finite Risk programs are usually written by a single reinsurer. This means that a single reinsurer takes on the risk associated with the program.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How are finite risk solutions typically written?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the role of investment income in premium calculation for Finite Risk programs?

Q. What is the concern raised by critics regarding finite risk or nontraditional insurance products?

Q. What is the requirement for a reinsurance contract to be considered as reinsurance for accounting purposes?

Q. What is the "10-10 rule" regarding risk transfer?

Q. What is the primary objective of financial reinsurance?

Q. How is financial reinsurance different from finite reinsurance?

Q. What does the ceding insurer receive in financial reinsurance?

Q. How is the amount of ceding commission determined in financial reinsurance?

Q. What does the ceding insurer appropriate the ceding commission for in financial reinsurance?

Q. What type of risk transfer is involved in financial reinsurance?

Q. Where is financial reinsurance often used as a means to increase solvency margin?

Q. What are the charges included in the risks covered by financial reinsurance?

Q. What does the ceding commission contribute to in financial reinsurance?

Q. When is financial reinsurance considered a useful tool?

Q. How long does a financial reinsurance contract typically last?

Q. Besides increasing the fund and capital, what other means of strengthening owned capital do insurance companies often use with the approval of the Regulator?

Q. Which of the following is NOT a variant of financial reinsurance?

Q. What is the purpose of a "time and distance" policy in reinsurance?

Q. How does the spread loss reinsurance contract protect the insurer?

Q. Which country precludes the use of spread loss reinsurance?

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!