Actuarial Notes

Exam DISC-RM Practice Question 253

Study guide: Exam DISC-RM

A proportional treaty has a sliding scale ceding commission: a minimum of 25% at a 65% loss ratio, rising one point for each point the loss ratio falls to 35% at a 55% loss ratio, then half a point for each point it falls, to a maximum of 45% at a 35% loss ratio. The provisional commission is 30%. If the treaty's loss ratio turns out to be 50%, what is the final commission?

  • A) 30.0%
  • B) 37.5%
  • C) 40.0%
  • D) 45.0%

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