Question

What is the purpose of the "As If" method in reinsurance?

a.

To demonstrate prior years of reinsurance experience

b.

To calculate maximum limit of liability

c.

To determine the ratio between written premium and liability

d.

To assess the effectiveness of reinsurance programs

Posted under Glossary of Reinsurance Terms IC85 Reinsurance Management

Answer: (a).To demonstrate prior years of reinsurance experience Explanation:The "As If" method is used to recalculate prior years of reinsurance experience and demonstrate what the underwriting results of a particular program would have been if the proposed program had been in force during that period.

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Q. What is the purpose of the "As If" method in reinsurance?
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