Question
a.
Reinsurance is a method for insurers to avoid risks entirely.
b.
Reinsurance is an arrangement to minimize an insurer's risks by transferring them to another insurer.
c.
Reinsurance is a process for insurers to increase their profits.
d.
Reinsurance is a strategy for insurers to increase their premiums.
Posted under IC 92 Actuarial Aspects of Product Development
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. Which statement best defines reinsurance?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. What does the direct insurer retain in a reinsurance arrangement?
View solution
Q. Which of the following is NOT an advantage of reinsurance?
View solution
Q. What are some considerations before implementing reinsurance?
View solution
Q. What types of reinsurance arrangements exist?
View solution
Q. Who determines the best retention limits in a reinsurance arrangement?
View solution
Q. How do reinsurance regulations impact insurance companies?
View solution
Q. In a reinsurance contract, the excess of the total amount of cover (T) over the retention amount (X) would be ____________ .
View solution
Q. The excess loss method of reinsurance is more predominant in which of the following types of insurance?
View solution
Q. While choosing retention limits, an insurer’s actuary would consider which of the following?
View solution
Q. Retention limits would be lower for high risk plans and higher for low risk plans. High risks would be on account of which of the following?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? 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!
