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  #1  
Old 01-29-2018, 10:53 PM
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Question Ceding Commission in Reinsurance Treaty

What would be the effects of a negative ceding commission?
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Old 01-30-2018, 12:09 PM
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Losing the bid to a competitor??
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Old 01-31-2018, 12:45 AM
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Losing the bid to a competitor??


What if there's no competition? How would it affect the financials?
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Old 01-31-2018, 12:24 PM
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What if there's no competition? How would it affect the financials?
I don't claim to know. But if I had to do it without any guidance, I would probably put the amount collected in as "premium" and zero as the commission. Accountants seem to be allergic to negative entries.
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Carol Marler, "Just My Opinion"

Pluto is no longer a planet and I am no longer an actuary. Please take my opinions as non-actuarial.


My latest favorite quotes, updated Feb 15, 2018. Hmmm. It's been quite a while.

Spoiler:
I should keep these four permanently.
Quote:
Originally Posted by rekrap View Post
JMO is right
Quote:
Originally Posted by campbell View Post
I agree with JMO.
Quote:
Originally Posted by Westley View Post
And def agree w/ JMO.
Quote:
Originally Posted by MG View Post
This. And everything else JMO wrote.
And this all purpose permanent quote:
Quote:
Originally Posted by Dr T Non-Fan View Post
Yup, it is always someone else's fault.
MORE:
Quote:
Originally Posted by PeppermintPatty View Post
But sometimes you get someone who has that charming mix of "don't care" and "don't get it", and there's just not much you can do.
Quote:
Originally Posted by Bro View Post
I recommend you get perspective.
Quote:
Originally Posted by Enough Exams Already View Post
Dude, you can't fail a personality test. It just isn't that kind of test.
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  #5  
Old 01-31-2018, 12:35 PM
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How would it affect the financials?
You should seek expert guidance. This can be a tricky practice area.
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Old 01-31-2018, 01:58 PM
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Exclamation Tricky Reinsurance

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You should seek expert guidance. This can be a tricky practice area.
Are there no experts on the AO?
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Old 01-31-2018, 02:21 PM
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It can affect both the balance sheet and the income statement of both the cedant and the reinsurer. There may be tax implications. If the amount may be material, you should seek one-on-one advice.
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Old 01-31-2018, 02:47 PM
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Are there no experts on the AO?
Sure. You just have no idea whether a poster responding is one of them.
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