IASA Ch 11

[Purple Princess]

Just trying to figure out the difference between a retroactive reinsurance contract and a retrospective reinsurance contract.

Retroactive = contract that reinsures past events.
Retrospective = ???

Retroactive and prospective contracts are opposites. Does that mean you can have a retrospective prospective contract? Hehe. That would be cool. :crazy:

[Quack]

I believe the term "retrospective" in insurance or reinsurance contracts usually refers to the way the contract is rated. The insured or reinsured pays an initial deposit premium, which is then adjusted based on the losses incurred. The Teng & Perkins paper explains this concept.

[Mel-o-rama]

Here's a new IASA 11 question. (Or at least the answer's been buried and needs to be refreshed anyways.)

In recent past exams, it appears that they like to ask questions on the overdue reinsurance recoverable penalty. Is this now something that has been taken off the syllabus? The only place I can find it is on page 11-29 - at the end of the "Annual Statement Requirements" section. Is the reinsurance penalty thing discussed anywhere else in the chapter? Don't we pick up studying again at "Reporting to Governments" at the bottom of 11-29?

[Quack]

The reinsurance penalty thing, a.k.a the provision for reinsurance, is covered on the pages excluded from the syllabus in IASA chapter 11. However, it is not off the syllabus entirely, because it is still covered in the Troxel and Bouchie article. Even if they don't ask about it on this exam, you'll still have to know it for exam 7, so you might as well learn it.

[Mel-o-rama]

Oh - I see - on page 67 of Troxel/Bouchie. Thanks and aaaahhhh!!!