Page 98 - Reinsurance Management IC85
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Reinsurance Management
reducing the effect of exchange rate fluctuations
to shorter duration.
iii. The treaty stipulates the due date for furnishing
accounts by the company, the due date for
confirmation by reinsurers and if brokers are
used, the date of submission of accounts and
dates of settlement of balances.
iv. There is no standard format for rendering
accounts but the format used should take into
account the basic features as set out in the
Treaty contract.
Q. Describe the method by which premiums and
claims are advised to reinsurers under an XL
treaty.
Ans: Under XL treaties, losses are usually dealt with
on a cash loss basis and are normally payable by
individual reinsurers upon the rendering of
appropriate information by the ceding company.
But in respect of premium, detailed accounts are
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