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      Question

      How is the commission on reinsurance accepted typically

      accounted for by the reinsurer?
      A It is recorded as a revenue for the reinsurer Correct Answer Incorrect Answer
      B It is treated as an expense for the reinsurer Correct Answer Incorrect Answer
      C It is not accounted for by the reinsurer Correct Answer Incorrect Answer
      D It is added to the reinsurer's capital Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Commission on Reinsurance Accepted: The reinsurer generally allows commission to reinsured on a part of business ceded. This is treated as an expense of the company.

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