Which of the following provides specific information regarding reinsurance assumed and ceded, is an integral part of the Annual Statement?

Question

Options

• ASchedule A
• BSchedule D
• CSchedule F
• DSchedule H

• A
  4% (1)
• B
  15% (4)
• C
  74% (20)
• D
  7% (2)

Explanation

Schedule F is the correct answer because it is the designated section of the NAIC Annual Statement that captures detailed reinsurance activity - both reinsurance assumed (risks taken on from other insurers) and reinsurance ceded (risks passed off to reinsurers), including amounts recoverable and potential uncollectible balances. It is a required, integral component of the Annual Statement filed by insurance companies.

Why the distractors are wrong:

• Schedule A covers real estate owned and acquired - unrelated to reinsurance.
• Schedule D reports bond and stock investments (securities holdings) - again, an investment schedule, not reinsurance.
• Schedule H is the Accident and Health exhibit, detailing A&H claims and loss data - specific to that line of business, not reinsurance activity broadly.

Memory tip: Think "F is for reinsurance Flows" - money flowing out (ceded) and flowing in (assumed). Since reinsurance involves your company sharing risk with others, "F" captures those financial flows in both directions.

No community discussion yet for this question.