CP 341: Reinsurance basis and counterparty risk remain after risk transfer
The ceded contract may respond differently from the underlying policies or the risk measure being managed. Counterparty performance and contract interpretation can leave residual risk.
Original practice scenario
In an original mortality scenario, compare recoveries under the treaty’s definitions with the insurer’s actual policy benefits. Identify exclusions, timing and collection exposure. Explain which residual risk the model includes and what requires contract or counterparty review.
Study check
Write the assumptions, the decision being supported and one limitation. Use the current course syllabus for the required terminology and scope; this introductory guide is not a complete course summary.
Reading sources
ActNet editorial guide · October 1, 2026 · Original illustrative examples.
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