Question

What is excess of loss cover?

a.

A form of reinsurance for property policies which were extended to cover catastrophe hazards

b.

A form of reinsurance that replaced facultative reinsurance

c.

An automatic form of reinsurance

d.

An indispensable part of an insurer’s operations today

Posted under IC85 Reinsurance Management

Answer: (a).A form of reinsurance for property policies which were extended to cover catastrophe hazards Explanation:The invention and technique of excess of loss cover was the most significant development in reinsurance in the past 100 years. This form of reinsurance filled a real gap for property policies which were extended to cover catastrophe hazards.

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