a. All statements are correct b. Only S2 is incorrect c. Only S3 is incorrect d. All statements are incorrect e. only S2 is correct f. only S3 is correct g. Only S1 is incorrect h. Only S1 is correct
a. All statements are correct b. Only S2 is incorrect c. Only S3 is incorrect d. All statements are incorrect e. only S2 is correct f. only S3 is correct g. Only S1 is incorrect h. Only S1 is correct
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
a. All statements are correct
b. Only S2 is incorrect
c. Only S3 is incorrect
d. All statements are incorrect
e. only S2 is correct
f. only S3 is correct
g. Only S1 is incorrect
h. Only S1 is correct
![S1: Proportional reinsurance is a form or reinsurance where corporate is ceded on the basis of a contract between the
ceding insurer and the reinsurer, whereby the ceding insurer agreed to cede and the reinsurer agrees to accept
automatically the reinsurance of the risk written by the ceding insurer, which fall within the scope of the agreement,
subject to the limits and terms specified therein. S2: Retrocession is a reinsurance assumed where the reinsurer will
retrocede a whole or a part of the risk accepted from the direct insurer to another reinsurer. S3: Ceding insurer is an
insurer that reinsures part of the whole of a risk with one or more reinsurance, the risk is considered as an inward
reinsurance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff80a95a8-703e-4dae-a07c-482589068642%2F0a6f6e99-02cc-4714-ab33-e2134208aa0e%2Fe0a3p4u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:S1: Proportional reinsurance is a form or reinsurance where corporate is ceded on the basis of a contract between the
ceding insurer and the reinsurer, whereby the ceding insurer agreed to cede and the reinsurer agrees to accept
automatically the reinsurance of the risk written by the ceding insurer, which fall within the scope of the agreement,
subject to the limits and terms specified therein. S2: Retrocession is a reinsurance assumed where the reinsurer will
retrocede a whole or a part of the risk accepted from the direct insurer to another reinsurer. S3: Ceding insurer is an
insurer that reinsures part of the whole of a risk with one or more reinsurance, the risk is considered as an inward
reinsurance
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education