Insurance Awareness - Reinsurance
Which of the following is a characteristic of non-proportional reinsurance?
Which of the following is a characteristic of non-proportional reinsurance?
medium Q14 of 15
Step-by-Step Solution
Step 1: Define non-proportional reinsurance
Non-proportional reinsurance means the reinsurer indemnifies the insurer only when losses exceed a pre-set retention or threshold.Final Answer:
Reinsurer pays only when losses exceed a specified retention limit → Option CQuick Check:
Reinsurer pays only when = key feature ✅
Quick Trick: Non-proportional = 'Excess of loss' coverage.
Common Mistakes:
MISTAKES- Confusing non-proportional with proportional reinsurance.
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