Question

Which type of reinsurance involves the reinsurer determining premium rates?

a.

Original terms (coinsurance) reinsurance

b.

Level risk premium reinsurance

c.

Risk premium reinsurance

d.

None of the above

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Level risk premium reinsurance Explanation:In Level risk premium reinsurance, the reinsurer determines premium rates upon which the insurer can load its costs and profit.

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Q. Which type of reinsurance involves the reinsurer determining premium rates?
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