Page 177 - Reinsurance Management IC85

Reinsurance Management

Q2. Write short notes on any five of the
following: -
i) Retrocessionnaire
ii) Layering
iii) Original conditions
iv) PML
v) SYNDICATE
vi) Uberrimae Fidei
vii) Stop-Loss Reinsurance
viii) Reinstatement

Ans: i) Retrocessionnaire - We as policy holders
transfer our risk to insurance companies , similarly
insurance companies will transfer their risk to an
another insurance company which are called
reinsurance companies. Depending on the capital,
risk appetite of insurance companies certain volume
of risk will be transferred to retrocession
companies.

ii) Layering - Where the reinsurance coverage is
placed in sections, one above the other, rather than

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