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An insurance company insures marine cargo risk for a total sum insured Euro 150,000,000.

<p> </p> <p> </p> <p>The insurance company have a qouta share &amp; Surplus treaty , total capacity100,000,000.</p> <p>The question :-</p> <p>Attempt to trace the reinsurance placing  for100% of the insured risk , bearing in mind the following :-</p> <p>1) Qouta share treaty capacity50% of100% , of which  ceding company's retention25% .</p> <p>2) Surplus treaty capacity50% of100% .</p> <p>  Wish you good luck.</p>

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Question added by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company
Date Posted: 2015/01/08
RUKHSAR AHMAD RUKHSAR AHMAD
by RUKHSAR AHMAD RUKHSAR AHMAD , DRIVER AND HELPER , CRESCENT GENERAL TRADING

orient insurance company they connected with al futtaim motors

Mamoun elbaghir abdalla mhamad Eltayeb
by Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

The quota-share &surplus reinsurance placing as follows :-

(A )Quota -share treaty reinsurer's share =50% of100% =50,000,000

(B) Ceding company's retention =25% of50% of100% =12,500,000

(C) Quota -share reinsurer's share =75% of50% of100% =37,500,000

(D) Surplus treaty reinsurer's share =50% of100% =50,000,000

  Therefor the total treaty capacity fully utilized and placed (100% ) =100,000,000

But we have still surplus amount equal50,000,000 part of the total sum insured 150,000,000 how we cover it  , the answer definitely is =  THIS AMOUNT IS SURPLUS AND BEYOND THE AUTOMATIC TREATY CAPACITY , HENCE SHOULD BE FACULTATIVELY PLACEDTherefor facultative reinsurer's share =50,000,000

  Kind regards

 

 

 

 

 

 

 

 

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