Question

Which type of reinsurance business involves more administrative work?

a.

Treaty reinsurance

b.

Facultative reinsurance

c.

Proportional reinsurance

d.

Non-proportional reinsurance

Answer: (b).Facultative reinsurance Explanation:Facultative reinsurance business involves more administrative work because each offer needs to be individually scrutinized and accepted or declined.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Which type of reinsurance business involves more administrative work?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. In which type of reinsurance business is premium volume built up faster?

Q. What distinguishes proportional reinsurance from non-proportional reinsurance?

Q. What advantage does non-proportional reinsurance offer to the reinsurer?

Q. What type of reinsurance involves accumulations under various treaties?

Q. Which factor is important to consider when determining the territorial scope of reinsurance business?

Q. Which markets may an insurer or reinsurer wish to avoid for political or economic reasons?

Q. Why might a new entrant in the reinsurance business start with domestic business?

Q. Why might an insurer or reinsurer initially prefer to write only short-tail business?

Q. What are the potential hazards associated with granting underwriting or binding authority to another insurer or agency?

Q. Why might some reinsurers have reservations about participating in pools and brokers' covers?

Q. What are the two options for writing inward reinsurance in terms of intermediaries?

Q. What is a potential advantage of writing business on a direct basis?

Q. How do insurers or reinsurers typically approach writing inward business when starting out?

Q. What should the acceptance limit of a reinsurer be based on?

Q. Why is it important for the acceptance limit to be sufficiently large?

Q. What should be emphasized when laying down guidelines for accepting business?

Q. What should be considered when determining the competent authority to make acceptances on behalf of the insurer?

Q. What is one of the considerations for justifying the cost involved in having the business in the books of the insurer?

Q. Which of the following tools help in determining quality in the case of inward reinsurance business?

Q. Which of the following is a purpose of retrocession in the reinsurance industry?

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!