Question

According to the IRDA (General Insurance – Reinsurance Regulations) 2000, what percentage of obligatory cessions received by the Indian Reinsurer must be retroceded to ceding insurers, and what is the maximum overriding commission allowed?

a.

25%, Maximum overriding commission of 1.5%

b.

50%, Maximum overriding commission of 2.5%

c.

75%, Maximum overriding commission of 3.5%

d.

100%, No maximum overriding commission specified

Answer: (b).50%, Maximum overriding commission of 2.5% Explanation:The Indian Reinsurer shall retrocede at least 50% of the obligatory cessions received by it to the ceding insurers after protecting the portfolio by suitable excess of loss covers. The retrocession shall be at original terms plus an overriding commission to the Indian Reinsurer not exceeding 2.5%.

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Q. According to the IRDA (General Insurance – Reinsurance Regulations) 2000, what percentage of obligatory cessions received by the Indian Reinsurer must be retroceded to ceding...

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