Question

What distinguishes Risk premium reinsurance from other types?

a.

The reinsurer's assumption of all risks

b.

The guarantee of premium rates for the term of the policy

c.

The calculation of premium rates based on the reinsurer's assessment of risk

d.

The sharing of all aspects of the original contract

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).The calculation of premium rates based on the reinsurer's assessment of risk Explanation:Risk premium reinsurance involves the reinsurer determining premium rates based on its assessment of risk, adding expense and profit margins.

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Q. What distinguishes Risk premium reinsurance from other types?
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