Question

In reinsurance, what does the term "Follow the Fortunes" mean?

a.

The reinsurer assumes all financial risks of the reinsured

b.

The reinsurer accepts all claims made by the reinsured

c.

The reinsurer follows the reinsured's investment decisions

d.

The reinsurer supports the reinsured's underwriting outcomes

Posted under IC85 Reinsurance Management

Answer: (d).The reinsurer supports the reinsured's underwriting outcomes Explanation:"Follow the Fortunes" is a concept in reinsurance where the reinsurer agrees to support the underwriting outcomes of the reinsured. The reinsurer aligns with the business decisions and results of the reinsured in all matters falling under the agreement.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. In reinsurance, what does the term "Follow the Fortunes" mean?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is a hard market in the context of reinsurance?

View solution

Q. What does the term "hours clause" refer to in reinsurance?

View solution

Q. What is meant by "Incurred But Not Reported (IBNR)" in reinsurance?

View solution

Q. What does the insolvency clause in reinsurance contracts ensure?

View solution

Q. What does an intermediary clause in a reinsurance contract specify?

View solution

Q. What is the purpose of a jurisdiction clause in a reinsurance treaty wording?

View solution

Q. What does the "Law of Large Numbers" postulate in insurance?

View solution

Q. What is a "layer" in the context of excess of loss reinsurance?

View solution

Q. Who is a "Lead Underwriter" in reinsurance?

View solution

Q. What does the term "Limits" refer to in reinsurance?

View solution

Q. How is the term "Line" used in the context of reinsurance?

View solution

Q. What is meant by "Long-Tail Liability" in insurance and reinsurance?

View solution

Q. What are "Losses Outstanding" in reinsurance?

View solution

Q. What does the "Losses occurring basis" refer to in excess of loss insurance?

View solution

Q. What do "Losses Paid" refer to in insurance?

View solution

Q. How is the "Loss Ratio" calculated in insurance?

View solution

Q. What is the purpose of a "Loss Ratio Stabilising Clause"?

View solution

Q. What does the "Net Line" represent in insurance?

View solution

Q. What is an "Obligatory Treaty" in reinsurance?

View solution

Q. How is "occurrence" defined in insurance?

View solution
View All MCQs on IC85 Reinsurance Management

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!

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Irrigation Engineering

Master the science of Irrigation Engineering with our dedicated category. Explore...

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...

Virology

Explore the captivating world of Virology with our specialized category. Dive into...

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Total Quality Management

Enhance your understanding of quality management with our Total Quality Management...