There are different types of treaty reinsurance. The arrangement between insurer and reinsurer for some types of treaty reinsurance agreements are as follows: Quota Share Arrangement: Risk assumed is ₹20,00,000 Direct in

CS Professional · Insurance - Law & Practice · PYQS · December 2022
There are different types of treaty reinsurance. The arrangement between insurer and reinsurer for some types of treaty reinsurance agreements are as follows: Quota Share Arrangement: Risk assumed is ₹20,00,000 Direct insurer bears 10% All reinsurers bear 90% Calculate the appropriate amount of loss bearing for direct insurer and reinsurer for all the above treaty arrangements and fill the following table with the amounts shared by the direct insurer and the reinsurer.

Answer & Explanation:

Shares of Amount in ₹ 1. Quota Share Treaty Reinsurance Direct insurer 2,00,000 Reinsurer 18,00,000 Total Loss 20,00,000

Topics: Reinsurance

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