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

View solution

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

View solution

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

View solution

Q. What is the primary objective of financial reinsurance?

View solution

Q. How is financial reinsurance different from finite reinsurance?

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. When is financial reinsurance considered a useful tool?

View solution

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

View solution

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?

View solution

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

View solution

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

View solution

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

View solution

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

View solution

Q. What is the purpose of a loss portfolio transfer in reinsurance?

View solution