What provides that the reinsurer assumes an agreed percentage of each risk being insured, sharing all premiums and losses accordingly with the reinsured?
A. Pro rata
B. surplus share
C. Quota share
D. structured premium
Which of the following is the type of excess of loss reinsurance?
A. per risk excess of loss
B. per occurrence excess of loss
C. aggregate excess of loss
D. All of the above
What unwinds or is reversed in the subsequent year as the ceded premium is earned?
A. Law of insurance premium relief
B. Financial growth relief
C. Statutory Surplus Relief
D. Spread risk relief
What is a form of reinsurance whereby the reinsurers and the reinsured both share a proportional part of the original premiums?
A. Pro rata
B. Partial fix
C. Pre-defined data
D. None of the above
The primary function of reinsurance is to increase the ceding company's __________to accept larger exposures than it would ordinarily be able to accept.
A. planning
B. capacity
C. projects
D. predictability
Over the long-term, the leveling effect for the reinsured is accomplished; however, the reinsurer frequently sustains significant losses in any one or several years, this leveling effect for the reinsured is referred to as which function of reinsurance?
A. stabilization
B. homogeneity
C. protect capital
D. line of business
What protects the insurance company's reported results and financial position from a severity of loss?
A. potential exposure program
B. aggregated payment program
C. insurance protection program
D. reinsurance program
Which of eth following is the distribution channel a reinsurer may use to write its business?
A. direct negotiations with a prospective reinsured by an account executive of the reinsurer
B. contacting prospective reinsureds through a broker or intermediary
C. Both A and B
D. Neither A nor B
Which of the following is NOT the type of reinsurers?
A. initial reinsurers
B. reinsurance assuming departments of primary insurers
C. certain underwriting organizations, pools, and associations
D. Lloyd's of London
An insurance-linked security can be issued by a property-casualty insurer through: A. anticipated salvage
B. surplus withdrawal
C. tabular discount
D. protected cell
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