Question

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

a.

Premium per contract

b.

Financial standing of the reinsurer

c.

Acceptance limit

d.

Geographical scope

Answer: (a).Premium per contract Explanation:The premium per contract should be sufficient to justify the cost involved in having the business in the books of the insurer. This indicates that the premium per contract is one of the considerations for justifying the cost.

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

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