Question

In reciprocal reinsurance trading, what can be adjusted to keep the treaty exchanges balanced?

a.

Treaty capacity and profitability

b.

Commission, profit commission, and reciprocity terms

c.

Treaty limits and hazard risks

d.

Premium reciprocity and underwriting surplus

Posted under IC85 Reinsurance Management

Answer: (b).Commission, profit commission, and reciprocity terms Explanation:Ceding insurers are ready to offer adjustments in commission, profit commission, and reciprocity terms to keep the treaty exchanges balanced. These adjustments help in maintaining a balanced reciprocal trading relationship between the insurers involved.

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Q. In reciprocal reinsurance trading, what can be adjusted to keep the treaty exchanges balanced?
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