Question

What factors are considered when reviewing excess of loss reinsurance?

a.

Validity of assumptions

b.

GNPI (Gross Net Premium Income)

c.

Adequacy of rate

d.

All of the above

Answer: (d).All of the above Explanation:When reviewing excess of loss reinsurance, the underwriter pays due regard to factors such as the validity of assumptions made during acceptance, GNPI (Gross Net Premium Income), and the adequacy of the rate. These considerations ensure that the reinsurance terms align with the intended risk coverage and pricing.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What factors are considered when reviewing excess of loss reinsurance?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What actions should be taken when a provisional notice of cancellation is given by the ceding insurer?

Q. How do reinsurers estimate outstanding losses for acceptances?

Q. Which method can be used to estimate outstanding claims if renewal statistics information is provided?

Q. What does IBNR stand for in the context of estimating outstanding claims?

Q. Why is it important to combine different methods and maintain consistency in making provisions for outstanding losses?

Q. What is the purpose of making an additional provision for claims incurred but not reported (IBNR)?

Q. What is the primary purpose of controlling accumulation hazards in reinsurance?

Q. What is the role of underwriters in controlling accumulation hazards?

Q. How is the magnitude of an earthquake measured?

Q. What does the Modified Mercalli Scale measure?

Q. What are some factors that influence the effect of an earthquake on a structure?

Q. Which of the following regions are highly exposed to earthquakes?

Q. How can underwriters determine the zones that may be affected by earthquake damage?

Q. What is the purpose of maintaining accumulation control sheets?

Q. Which regions are prone to volcanic eruptions?

Q. What approach should underwriters take to accumulations arising from catastrophic perils?

Q. Why do ceding insurers and reinsurers need periodical statistics of their business?

Q. What is the purpose of establishing a decision support system in reinsurance?

Q. Which of the following factors can affect underlying statistical trends in reinsurance?

Q. Who are the users of the information produced from a statistical base in insurance and reinsurance organizations?

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!