Question

What is "Retention" in the context of reinsurance?

a.

Reinsurance that transfers all insurance liability to the reinsurer

b.

Reinsurance that covers only a portion of the ceding insurer's losses

c.

The process of reinstating a reinsurance limit after payment of a loss

d.

The amount of insurance liability or loss that an insurer assumes for its own account

Posted under IC85 Reinsurance Management

Answer: (d).The amount of insurance liability or loss that an insurer assumes for its own account Explanation:"Retention" can be defined as the amount of insurance liability or loss that an insurer assumes (or retains) for its own account. It can refer to the insurer's portion of liability in pro rata reinsurance or the insurer's portion of loss in excess of loss reinsurance.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is "Retention" in the context of reinsurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is "Retrocession" in the context of reinsurance?

View solution

Q. What is a "Retrocessionnaire"?

View solution

Q. What is "Risk Based Capital"?

View solution

Q. What is "Run-Off Cancellation or Termination"?

View solution

Q. What is "Setoff" in the context of reinsurance?

View solution

Q. What is "Sliding Scale Commission" in the context of pro rata treaty reinsurance?

View solution

Q. What is a "Slip" in the context of reinsurance?

View solution

Q. What is "Solvency Margin"?

View solution

Q. What is "Stop-Loss Reinsurance" also known as?

View solution

Q. What is "Surplus Reinsurance"?

View solution

Q. What is a "Surplus Treaty" in pro rata reinsurance?

View solution

Q. What is a "Syndicate" in the insurance industry?

View solution

Q. What is a "Treaty" in the context of reinsurance?

View solution

Q. What is a "Treaty" in the context of reinsurance?What is the meaning of "Uberrimae Fidei"?

View solution

Q. What is "Ultimate Net Loss" in reinsurance?

View solution

Q. What does "Underlying" refer to in insurance or reinsurance?

View solution

Q. What is the meaning of "Underwriting Year Experience"?

View solution

Q. What does the term "Underwriting-Year Basis" refer to in rating?

View solution

Q. What is the definition of "Unearned Premium Reserve"?

View solution

Q. What does "Utmost Good Faith" mean?

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!

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Cost Accounting

Dive into the realm of Cost Accounting with our specialized category. Explore cost...

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

IC90 Human Resource Management

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

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....