Page 93 - Reinsurance Management IC85

The Insurance Times

between premium and maximum liability.

h. Date of commencement of the treaty,
provisions relating to cancellation, brokerage,
commission and profit commission, reserves
and interest and taxes are to be studied to
evaluate the acquisition costs.

i. Examination of the method followed for
portfolio entry and withdrawal and cash loss
limit should be at least equal to the retention
of the ceding company.

j. Before acceptance, past results and the leaders'
reputation are evaluated.

Q. Outline the various methods that may be
followed for making provisions for
outstanding losses in respect of an inward
treaty portfolio.

Ans: Generally the ceding companies are not in a position
to provide an estimate of outstanding losses to

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