There are different types of treaty reinsurance. The arrangement between insurer and reinsurer for some types of treaty reinsurance agreements are as follows: Surplus Treaty Reinsurance Arrangement: A 9 Line Surplus Trea

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: Surplus Treaty Reinsurance Arrangement: A 9 Line Surplus Treaty Risk Assumed is ₹2,00,00,000 Direct insurer retention is ₹20,00,000 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 ₹ 2. Surplus Treaty Reinsurance Arrangement Direct Insurer retention 20,00,000 Treaty 1,80,00,000 Total loss 2,00,00,000

Topics: Reinsurance

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