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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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