Important Points for IC 22 - Life Insurance Underwriting Exam
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Retention limit depends on factors like risk appetite and size of the company, quality and experience of underwriters, surplus of the direct company etc.
Retrocession is a process in which a reinsurer reinsures its risks with another reinsurer. Retrocession is the reinsuring of reinsurance.
In facultative reinsurance, the risk sharing is on an individual basis.
In treaty reinsurance, the reinsurer has to accept all risks and has no option to decline the risk.
The contract of the policyholder is with the direct insurer. If reinsurers fail to pay a claim for any reason, the liability for full payment of the claim rests with the direct insurer.
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