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Profit Sharing
What’s Your Reinsurance IQ?
Question 1 – Correct Answer
Forms
What’s Your Reinsurance IQ?
Question 2 – Correct Answer
Forms
What’s Your Reinsurance IQ?
Question 3 – Correct Answer
Accounting
What’s Your Reinsurance IQ?
Question 3 – Correct Answer
Functions
What’s Your Reinsurance IQ?
Question 4 – Correct Answer
Forms
What’s Your Reinsurance IQ?
Question 5 – Correct Answer
Facultative
What’s Your Reinsurance IQ?
Question 8 – Correct Answer
Premium Math
What’s Your Reinsurance IQ?
Question 8 – Correct Answer
Claims - Expenses
What’s Your Reinsurance IQ?
Question 9 – Correct Answer
Claims - Expenses
What’s Your Reinsurance IQ?
Question 9 – Correct Answer
Reinstatement Math
What’s Your Reinsurance IQ?
Question 12 – Correct Answer
Forms
What’s Your Reinsurance IQ?
Question 12 – Correct Answer
Both the Surplus and Per Risk Excess reinsurance forms apply coverage on a risk by risk basis,
thus directly affecting an insurer’s Policy Limit Capacity. Surplus Reinsurance operates on a
proportional basis while Per Risk Excess operates on a non-proportional basis.
Forms
What’s Your Reinsurance IQ?
Question 13 – Correct Answer
Treaty Terms
What’s Your Reinsurance IQ?
Question 13 – Correct Answer
Treaty Terms
What’s Your Reinsurance IQ?
Question 14 – Correct Answer
Treaty Terms
What’s Your Reinsurance IQ?
Question 14 – Correct Answer
Jargon, Acronyms
What’s Your Reinsurance IQ?
Question 15 – Correct Answer
Jargon, Acronyms
What’s Your Reinsurance IQ?
Question 16 – Correct Answer
Surplus, Capacity
What’s Your Reinsurance IQ?
Question 16 – Correct Answer
17. An arbitration Panel determines that Party A owes Party B $425,000 due as
reinstatement premium for claims that were paid by the Reinsurer on May 16, 2018.
If the award will include interest and must be paid on October 3, 2019, how much
interest will be awarded at 6% simple interest?
a. $25,501
b. $51,000
c. $35,281
d. $42,500
Interest owed each day = Interest Rate X Amount / 365 = 6% X $425,000 / 365 = $69.86
Total Interest = Daily Interest X # days = $69.86 X 505 = $35,281
Number of days can be easily determined using a spreadsheet to perform the calculation by subtracting one
date from the other.
Math – Interest Calc
What’s Your Reinsurance IQ?
Question 18 – Correct Answer
Workers Compensation often involves unusually long claim payout characteristics. The commutation
clause in a general, or a blanket, casualty treaty foreshortens such claims by way of a calculation that
predicts the future loss to the reinsurer, paid currently on a discounted basis.
Ratings
What’s Your Reinsurance IQ?
Question 20 – Correct Answer
Retrocessions
What is This Panel’s Reinsurance IQ?