A reinsurance contract that is entered into on a case-by-case basis after an application for insurance is received by a primary insurer is called
A) a reinsurance pool.
B) automatic treaty reinsurance.
C) retrocession.
D) facultative reinsurance.
Answer: D
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If management not only desires to provide its sales force with an incentive to sell but also wants control over other nonselling activities, what would be the best compensation plan?
a. a combination system b. a bonus system c. a straight salary system d. progressive commission
Bob Blakemore is a pilot for Northern Airways. He's been working for the company for 15 years and has an excellent record
The company discovers that Bob has for some time now been charging for meals and hotel expenses on layovers in Whitehorse, even though he stays with his sister for free when he's there. This is contrary to company policy. The amount involved is not large in relation either to Bob's salary or to his allowable expenses. Nevertheless, Northern is very strict about such matters, and it summarily dismisses Bob. Which of the following statements is TRUE? A) Bob's conduct constitutes dishonesty and is therefore just cause for dismissal. B) Dishonesty is an exception to the rule that an employee should be given an opportunity to change theirbehaviour. C) Misconduct gives just cause for dismissal if it completely destroys the relationship of trust that must exist between employer and employee. D) Dishonesty no longer automatically gives just cause for dismissal E) Both C and D