Question

How does credit rating assist in determining the quality of retrocession offers?

a.

By assessing financial problems

b.

By monitoring accumulations

c.

By controlling natural perils

d.

By evaluating the financial strength of counterparties

Posted under IC85 Reinsurance Management

Answer: (d).By evaluating the financial strength of counterparties Explanation:The tool of credit rating assists in determining the quality of retrocession offers. Credit rating helps evaluate the financial strength of counterparties, providing insight into their ability to fulfill their obligations.

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Q. How does credit rating assist in determining the quality of retrocession offers?
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