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the credit rating, better the financial strength
of the company.

ix) What type of treaty the company is looking for.
Type of reinsurance cover decides the premium
to be paid by the insurance company and also
commission which it will receive from the
reinsurer. There will be no commission involved
when the company goes for non-proportional
treaties.

x) Past results of treaties also gives the reinsurer
idea about performance of the treaty they are
negotiating.

Q4. a) Calculate the commission on Sliding

Scale based on Earned premiums from

following data :-

Rs.

Premium ceded during year 30,00,000

Incoming Premium Reserve 10,00,000

Outgoing Premium Reserve 12,00,000

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