10 Questions
What is the purpose of a reinsurance program?
To support the ceding company for the portion of risk they cannot handle
Why is there no typical (ideal) reinsurance program?
Each company's situation regarding loss exposure and financial solidity is unique
What does a typical reinsurance program involve?
A combination of several methods of protection
What does a reinsurance program consist of?
A combination of ceded reinsurance covers tailor-made for the company
What determines the need for a unique reinsurance program for each company?
Loss exposure, financial solidity, management culture, future plans, and marketing opportunities
In a Quota Share-Surplus Method, what protects the reinsured's retention under the surplus treaty?
Underlying Quota Share arrangement
What happens as the cedant grows in business and starts to write large volumes in a Quota Share-Surplus Method?
Reinsurer's share of the quota share is gradually reduced
What must be true about participating reinsurers in a Quota Share-Surplus Method?
They must be the same across both treaties
How is the capacity of the surplus expressed in a Quota Share-Surplus Method?
As a multiple of the gross retention
In a Quota Share-Surplus Method, when does the use of Quota Share come into play?
Before the surplus
Learn about the parameters related to the scale and type of reinsurance program that best fits a ceding company's needs. This quiz covers the essential design of reinsurance programs and their support for primary insurers.
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