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.

Life Insurance Underwriting

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