Question
In this reinsurance arrangement, an agreement is made
between the ceding company and the reinsurer(s), specifying limits for reinsurances that can pertain to monetary values, geographical regions, or sections of business. Within this contract, the reinsurer is obligated to accept all risks falling within the scope of the agreement, and the ceding company is required to cede risks as per the agreement's terms. What type of reinsurance is being described?Solution
Treaty Insurance: Under this type of reinsurance a Treaty agreement is entered into between the ceding company and the re-insurer(s) whereby the reinsurances are within the limits of the Treaty. These limits can be monetary, geographical, section of business, etc. Under this contract it is obligatory for the re-insurer to accept all risks within the scope of this Treaty and it is obligatory for the ceding company to cede risks in accordance with the terms of the Treaty.
Ajay and Raju have a total sum distributed between them in the ratio of 12:5. Ajay invests his portion at a simple interest rate of 20% per annum for 15...
A person invested Rs. 50,000 in scheme A that offers simple interest at 25% p.a. Four years later, they withdrew Rs. x from scheme A and placed it in sc...
A person 'P' invests ₹24,000 at a simple interest rate of 15% per annum for 2 years, while Jay invests the same amount, ₹24,0...
Vishal has certain sum of money with him. He invested 80% of the sum in scheme ‘X’ offering 15% p.a. simple interest for 8 years and received Rs. 27...
If Rohit invested Rs. 16,000 at compound interest of 25% p.a., compounded annually, then interest earned by him in two years would be:
A man invested certain sum at 9.5% p.a. simple interest for his son who was 14 years old. If the amount received by the son when he was 27 years old is ...
A sum of money doubles itself in 5 years at simple interest. What is the rate of interest per annum?
An amount of Rs. 'x' is invested at a simple interest rate of 15% per annum and grows to Rs. 14,500 after 3 years. If the same am...
The simple interest received on a certain sum is Rs. 4500 less than the sum invested. If the sum was invested at 5% p.a. for 15 years, then find the sim...
If the ratio of the sum invested and simple interest received after 1 year is 20:9 respectively, then find the rate of interest.
Relevant for Exams:
