Fall 2019 #17
Looking for some clarification on terminology for part a of this question. In the exhibit for commission and brokerage, when the line is "reinsurance ceded" (2.3 and 2.6), is this the ceding commission from the reinsurer to the policy holder (insurance company)? If so, what do the "reinsurance assumed" and "direct" lines represent?
Comments
Correct. "Direct" is the commission paid to agents for direct business. "Assumed" is reins commission you pay for acquiring business of another insurer.