Question

What is the retention limit?

a.

The amount of premium paid by the policyholder

b.

The amount of risk/liability taken on by the reinsurer

c.

The amount of liability which a direct insurance company takes on

d.

The amount of profit made by the direct insurer

Answer: (c).The amount of liability which a direct insurance company takes on Explanation:The retention limit is the amount of liability which a direct insurance company takes on.

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Q. What is the retention limit?

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