Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the purpose of a reinsurance program?
What is the purpose of a reinsurance program?
- To eliminate all risk for the ceding company
- To take over all the risk from the ceding company
- To support the ceding company for the portion of risk they cannot handle (correct)
- To compete with the ceding company in risk management
Why is there no typical (ideal) reinsurance program?
Why is there no typical (ideal) reinsurance program?
- Regulatory authorities prohibit standard reinsurance programs
- Insurance companies do not require reinsurance programs
- The reinsurer determines the structure of the reinsurance program
- Each company's situation regarding loss exposure and financial solidity is unique (correct)
What does a typical reinsurance program involve?
What does a typical reinsurance program involve?
- A combination of several methods of protection (correct)
- An exclusive focus on excess of loss reinsurance
- A complete transfer of risk to the reinsurer
- A single reinsurance type such as quota share or surplus
What does a reinsurance program consist of?
What does a reinsurance program consist of?
Signup and view all the answers
What determines the need for a unique reinsurance program for each company?
What determines the need for a unique reinsurance program for each company?
Signup and view all the answers
In a Quota Share-Surplus Method, what protects the reinsured's retention under the surplus treaty?
In a Quota Share-Surplus Method, what protects the reinsured's retention under the surplus treaty?
Signup and view all the answers
What happens as the cedant grows in business and starts to write large volumes in a Quota Share-Surplus Method?
What happens as the cedant grows in business and starts to write large volumes in a Quota Share-Surplus Method?
Signup and view all the answers
What must be true about participating reinsurers in a Quota Share-Surplus Method?
What must be true about participating reinsurers in a Quota Share-Surplus Method?
Signup and view all the answers
How is the capacity of the surplus expressed in a Quota Share-Surplus Method?
How is the capacity of the surplus expressed in a Quota Share-Surplus Method?
Signup and view all the answers
In a Quota Share-Surplus Method, when does the use of Quota Share come into play?
In a Quota Share-Surplus Method, when does the use of Quota Share come into play?
Signup and view all the answers
