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Self-test questions

1. What is a quota share treaty?
2. How can the use of proportional treaties improve an insurer’s solvency margin?
3. What is a facultative carve-out?
4. What problems might a reinsurer of a second surplus treaty face?
5. What is a facultative obligatory treaty?

6. What is the purpose of premium portfolio transfers?
7. What happens in a reverse profit commission arrangement?
You will find the answers at the back of the book

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Chapter Reference copy for CII Face to Face Training