Reinsurance Distributing the Programme Arrangements MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Reinsurance Distributing the Programme Arrangements, a fundamental topic in the field of IC85 Reinsurance Management. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Reinsurance Distributing the Programme Arrangements MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Reinsurance Distributing the Programme Arrangements mcq questions that explore various aspects of Reinsurance Distributing the Programme Arrangements problems. Each MCQ is crafted to challenge your understanding of Reinsurance Distributing the Programme Arrangements principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC85 Reinsurance Management tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Reinsurance Distributing the Programme Arrangements MCQs are your pathway to success in mastering this essential IC85 Reinsurance Management topic.

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Reinsurance Distributing the Programme Arrangements MCQs | Page 1 of 10

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Q1.
Who is involved in the programme design stage of reinsurance?
Discuss
Answer: (c).Both professional reinsurers and intermediaries Explanation:Leading professional reinsurers and intermediaries are involved in the programme design stage.
Q2.
What does the involvement of professional reinsurers and intermediaries add to the programme design?
Discuss
Answer: (d).All of the above Explanation:The involvement of professional reinsurers and intermediaries adds realism and synchronization, strengthens the placement of reinsurance covers, and enables continuous and assured reinsurance protection.
Q3.
When do negotiations for actual limits and terms take place in the programme design stage?
Discuss
Answer: (c).At the finalization of the programme design Explanation:Negotiations commence on an indicative basis and are finalized when the programme design is put in place.
Q4.
Which parties compete during the negotiation stage?
Discuss
Answer: (c).Both reinsurers and intermediaries Explanation:Professional reinsurers and intermediaries compete during the negotiation stage.
Q5.
What is a key consideration in negotiations regarding the ceding insurer?
Discuss
Answer: (d).All of the above Explanation:No reinsurer wishes to support a ceding insurer who is inadequately capitalized, in financial difficulty, or known in the market to be a 'rogue.'
Q6.
What information does a reinsurer want to know about the underwriter of a ceding insurer?
Discuss
Answer: (d).All of the above Explanation:The reinsurer wants to know the underwriter's name, track record in underwriting, market standing, and trustworthiness.
Q7.
Why it is the dangerous to accept too much business of a particular class in a particular territory?
Discuss
Answer: (c).Both a and b Explanation:Accepting too much business of a particular class in a particular territory can cause an imbalance to the reinsurer's business and expose them to heavy losses.
Discuss
Answer: (c).Both a and b Explanation:Following a leader in negotiations can be material as it ensures proper and responsible contract terms and conditions and provides guidance in monitoring the ceding insurer's underwriter's activities.
Discuss
Answer: (c).Both a and b Explanation:Ceding insurers often request reciprocity from treaty reinsurers, even if the ceded business may not lend itself to such a business relationship.
Q10.
What should reinsurers ensure regarding the ceding insurer's retention?
Discuss
Answer: (c).Both a and b Explanation:Reinsurers should ensure that the ceding insurer's retention is of sufficient size and indicative of risk bearing by the insurer.
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