Difference between facultative and treaty reinsurance

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(a) Define the term reinsurance and explain the difference between facultative and treaty reinsurance.

(b) In most cases, an underwriter will try to accept a risk, subject to negotiation and agreed terms. Identify the THREE (3) considerations under which an underwriter would be forced to reject a risk.

(c) Following the initial acceptance of a risk, identify THREE (3) opportunities for an underwriter to reassess a risk during the life-cycle of a policy.

(d) In ratemaking, when would schedule rating normally be used over class rating? In your response, include definitions of both terms, including examples.

Reference no: EM133087298

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