Insurance Awareness - Reinsurance
Which of the following is a type of proportional treaty reinsurance?
Which of the following is a type of proportional treaty reinsurance?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand types of treaty reinsurance
Proportional treaty reinsurance involves sharing premiums and losses in agreed proportions. Quota share is a classic example.Final Answer:
Quota Share → Option CQuick Check:
Excess of loss and stop loss are non-proportional types; facultative is not treaty reinsurance.
Quick Trick: Proportional = Quota Share and Surplus; Non-proportional = Excess of Loss.
Common Mistakes:
MISTAKES- Mistaking excess of loss as proportional reinsurance.
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