Q. In a reinsurance treaty, what is the role of the direct insurer?

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Q. What happens if the total amount of cover exceeds the Facultative Limit in reinsurance?

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Q. What action does the re-insurer take if the insurance cover per life is below the Facultative Limit (F)?

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Q. What is the excess of total cover (T) over the retention amount (X) referred to as?

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Q. What condition might the re-insurer specify regarding the minimum cession amount?

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Q. Why are reinsurance premium rates generally lower than those charged by the insurer?

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Q. What is one of the terms for terminating a reinsurance treaty?

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Q. When could disputes arise between the insurer and the re-insurer?

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Q. What is one advantage of reinsurance in terms of capital utilization?

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Q. How does reinsurance help in minimizing losses for insurers?

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Q. In what way does reinsurance enable higher risk acceptance by insurers?

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Q. How can reinsurers assist insurers in underwriting guidance and training?

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Q. In what scenario could reinsurers provide assistance in designing and pricing new insurance products?

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Q. How does reinsurance contribute to the strength and stability of insurers and the insurance industry?

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Q. In what scenario does reinsurance help in checking the volatility of claim experience?

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Q. How does reinsurance assist in minimizing new business strain for insurers?

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Q. What role does reinsurance play in reducing insurance parameter risk for insurers?

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Q. How does reinsurance contribute to cost reduction for insurers?

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Q. What is a primary consideration for insurers before reinsuring?

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Q. How do retention limits influence the decision to reinsure?

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