What type of reinsurance involves a life assurance company re-insuring 33% of every sum assured proposed to it?

The correct answer is Quota share reinsurance, which is characterized by the re-insurance of a predetermined percentage of every insured risk. In this case, the life assurance company is re-insuring 33% of every sum assured proposed to it, meaning that they share a fixed proportion of the risk with the reinsurer. This type of reinsurance helps the primary insurer manage their risk exposure by allowing them to cede a consistent portion of their liabilities on all policies written, thereby limiting their potential losses while still participating in the premiums associated with those policies.

Quota share agreements are particularly beneficial for life assurance companies as they provide a way to effectively balance their risk portfolios while maintaining their underwriting capacity and solvency. By doing so, they can take on more business without excessively increasing their risk exposure, ultimately leading to a more stable financial position.

The other options involve different mechanisms of risk-sharing and do not fit the scenario of sharing a fixed percentage of every policy in the same way. Surplus reinsurance, for example, involves reinsuring amounts in excess of a certain limit, while excess reinsurance pertains to covering losses above a specified threshold. Fractured reinsurance is less commonly used and may involve more complex arrangements. None of these demonstrate the consistent proportional