Insurance Awareness - Reinsurance
In non-proportional reinsurance, the reinsurer's liability begins when:
In non-proportional reinsurance, the reinsurer's liability begins when:
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand non-proportional reinsurance
Non-proportional reinsurance means the reinsurer pays only when losses exceed a specified amount called the attachment point.Final Answer:
Losses exceed a pre-agreed attachment point. → Option AQuick Check:
[Non-proportional reinsurance liability] = Losses exceed attachment point ✅
Quick Trick: Non-proportional = No payment below threshold (attachment point).
Common Mistakes:
MISTAKES- Assuming reinsurer shares premiums or all losses in non-proportional contracts.
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