Insurance Awareness - Reinsurance
Which of the following is an example of a proportional reinsurance contract?
Which of the following is an example of a proportional reinsurance contract?
easy Q13 of 15
Step-by-Step Solution
Step 1: Identify proportional contracts
Surplus Share is a type of proportional reinsurance where the reinsurer accepts risks above the insurer's retention limit in agreed proportions.Final Answer:
Surplus Share → Option BQuick Check:
[Proportional reinsurance example] = Surplus Share ✅
Quick Trick: Quota Share and Surplus Share are proportional; Excess of Loss is non-proportional.
Common Mistakes:
MISTAKES- Confusing Excess of Loss as proportional due to its name.
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