Assessment: Reinsurance Contracts 20_21

Please complete the sentence.

The insurer that diversifies its insurance portfolio is known as the-

Which of the following statements with regard to reinsurance are correct?

i.   Any insurer may accept the risks underwritten by other insurers.
ii.  The reinsurance of a risk does not involve the insured at all.
iii. Retrocession is when an insurer reinsures their risk with more than one reinsurer.
iv.  In a reinsurance contract, the insurer is exchanging insurance risk for market risk.

Which of the following may imply an arbitrage opportunity for an insurance company in terms of reinsurance contracts?

ABC Insurer wishes to reinsure a large unusual risk by setting a priority.
Which one of the following products will be suitable in this event?

Which of the following statements with regard to treaty reinsurance are correct?

i.   The relationship between the ceding company and the insurer is likely to be short-term.
ii.  The relationship between the ceding company and the insurer is likely to be long-term.
iii. Treaty reinsurance provide less flexibility for the ceding company than facultative reinsurance.
iv. Treaty reinsurance provide more flexibility for the ceding company than facultative reinsurance.

Which one of the following statements with regard to difference between treaty a facultative reinsurance contract is correct?

Good Insurers purchased a non-proportional reinsurance policy with Reinsurer X with the following terms:

• R50 000 XS of R50 000

Please complete the sentence.

If a reinsurance contract is written on a risk attaching basis, the reinsurance is provided for claims arising from-

Which one of the following products may be seen as an alternative to reinsurance treaty reinsurance contract?

Which one of the following statements with regard to investment products or insurance methods that can be used as an alternative to reinsurance is correct?