Question

What is a deposit premium in reinsurance?

a.

The premium paid by the reinsured for coverage

b.

The premium adjusted based on the completion of the treaty period

c.

The premium received by the reinsurer at the inception of the treaty

d.

The premium subject to adjustment on completion of the contract period

Posted under IC85 Reinsurance Management

Answer: (c).The premium received by the reinsurer at the inception of the treaty Explanation:A deposit premium arises when the actual premium is received by the reinsurer as a deposit at the inception of the treaty or contract period. It is subject to adjustment based on the completion of the treaty or contract period.

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Q. What is a deposit premium in reinsurance?
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