Which of the following allows reinsurance to address the problem of surplus drain? Ceding commissions Excess...

Which of the following allows reinsurance to address the problem of surplus drain? Ceding commissions Excess of loss reinsurance Waiver of commissions Waiver of premiums

Solutions

Expert Solution

Answer:

The correct answer is 'Excess of loss reinsurance'

Excess of loss reinsurance allow the reinsurer to compensate the ceding company for losses that exceed specified limit.

All the remaining options are irrelevant.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which statement regarding surplus share reinsurance is correct? Surplus share reinsurance is a form of non-proportional...

Which statement regarding surplus share reinsurance is correct? Surplus share reinsurance is a form of non-proportional reinsurance. In order for a policy to be reinsured under a surplus share agreement, the policy's limits must exceed the insurer's retention. Surplus share reinsurance is a form of treaty reinsurance and is not a form of facultative reinsurance. None of the above statements are correct.

Problem Description Write a web page that allows a person to enter address information, salutation, and...

Problem Description Write a web page that allows a person to enter address information, salutation, and a prize amount. Place a button at the bottom of the page that, which clicked, displays the contents of a letter informing them that they've won

1. Governments may have a budget surplus, which allows them the flexibility to put money into...

1. Governments may have a budget surplus, which allows them the flexibility to put money into a(n) ______________ to be used when budget shortfalls occur. Investment Account Budget Reserve Slush Fund Holding Account 2. A cash flow problem occurs when the amount of revenue available is not sufficient to cover a media expenditure. Barring any unforeseen occurrences, cities do not tend to have a cash flow problem because they know when tax collections are due. True False 3. In the...

Which of the following is a... Which of the following is a way to address some...

Which of the following is a... Which of the following is a way to address some of the shortcomings of specialization? Multiple Choice Each employee further develops his/her area of specialization. Each employee brings his/her own equipment or tools to work Each employee is assigned to a team to perform a job. Each employee takes care of one activity only.

Which of the following costs should not be recorded as an expense? Multiple Choice Sales commissions...

Which of the following costs should not be recorded as an expense? Multiple Choice Sales commissions Insurance on factory building Product shipping costs Product advertising

1. Which of the following statements is true? (A) Producer Surplus is the Area of a...

1. Which of the following statements is true? (A) Producer Surplus is the Area of a Triangle. (B) Market Price = Producer Surplus + Cost of Production. (C) Producer Surplus can be negative. (D) A change in quantity shifts the supply curve. 2. Consider the following statement: “According to the Washington Post, President Trump has lied 16,000 times while in office. This is unprecedented for a U.S. President.” What statistical fallacy best fits this statement? (A) Berkson’s Paradox. (B) Base...

Which of the following is true of coinsurance? A. It allows theinsured to pay an...

Which of the following is true of coinsurance? A. It allows the insured to pay an extra premium initially in exchange for a guaranteed option to buy more insurance at certain specified times later. B. It excuses the insured from paying premiums if he or she becomes disabled. C. It's rarely found in property insurance policies. End of exam D. It's a provision under which the insurer and the insured share costs, after the deductible is met, according to a...

Problem 1. Network Address Suppose an ISP has the following IP address block: 130.12.128.0/23 a. Assume...

Problem 1. Network Address Suppose an ISP has the following IP address block: 130.12.128.0/23 a. Assume that the ISP wants to divide its address block (130.12.128.0/23) into two equal-sized contiguous address blocks, and give one of these address blocks to its customers (C1 and C2). Provide network addresses (of the form a.b.c.d/x) for C1 and C2. b. Now let’s assume that the ISP wants to divide its address block (130.12.128.0/23) into four equal-sized contiguous address blocks, and give one of...

Which of the following sentences contains surplus words? Multiple Choice • It should be understood that...

Which of the following sentences contains surplus words? Multiple Choice • It should be understood that attendance is expected at the staff meeting every Friday. • After reviewing the request, I decided to approve it. • The company had to lay off 20 percent of its staff. • Employees have the right to voice their opinion. • The committee reviewed the grant proposals.

Which one of the following statement about surplus lines insurance taxation is true?

Which one of the following statement about surplus lines insurance taxation is true?Select one:a. Surplus lines insurance is taxed but admitted lines insurance is not taxedb. Surplus lines insurance taxation is the same as admitted lines insurance taxationc. Surplus lines insurance is subject to tax but the tax is assessed and collected differently than it is with admitted linesd. No tax applies to surplus lines insurance but admitted lines insurance is taxed

Subjects