Question

While preparing summary sheet in the case of reciprocal exchange, which of the following information is not included?

a.

Adequacy of rate

b.

Commissions

c.

Incurred claims

d.

Net results

Answer: (a).Adequacy of rate Explanation:In the case of reciprocal exchange, all the business exchanged with the insurer or reinsurer is summarized in a sheet, showing cessions on one side and matching acceptances on the other side. The purpose of this summary sheet is to present a concise overview of the business exchanged. While the summary sheet may include information such as commissions, incurred claims, and net results.

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Q. While preparing summary sheet in the case of reciprocal exchange, which of the following information is not included?

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