Question

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

a.

Financial reinsurance

b.

Subordinated loan

c.

Time and distance policies

d.

Spread loss and loss portfolio transfers

Posted under IC85 Reinsurance Management

Answer: (b).Subordinated loan Explanation:In many countries, in addition to an increase in the fund and capital, insurance companies accept subordinated loan and financial reinsurance as a means of strengthening owned capital with the approval of the Regulator.

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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?
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