Important Points for IC 83 - Group Insurance and Retirement Benefit Schemes Exam
Page 39 Of 49
Go to:
In the case of a Quota-share arrangement, both insurer and reinsurer bear the same mortality risk.
In surplus reinsurance, the reinsurer reinsure on surplus basis and thus have higher risk profile due to anti-selection.
Catastrophe cover is a type of non-proportional reinsurance arrangement which limits the cost of multiple claims as a result of a single incident, such as a natural disaster or on accident.
Stop Loss reinsurance is another non-proportional reinsurance arrangement where the reinsurer will pay all or a portion of claims in excess of a stipulated amount that is a multiple of an insurers expected total annual claims.
Normally under Group Insurance business wherever there is subsisting reinsurance agreement, the premium quote will be given in consultation with the reinsure. However when it comes to settlement of claim, insurer will settle the claim first which is followed by preferring claim with the reinsurer.
MODELEXAM® 
www.realsoftinfoplan.com