Question

How are the limits of surplus stated?

a.

Sum insured or probable maximum loss (PML).

b.

Retrocession or treaty reinsurance.

c.

Facultative or obligatory treaty reinsurance.

d.

None of the above.

Posted under IC85 Reinsurance Management

Answer: (a).Sum insured or probable maximum loss (PML). Explanation:The limits of surplus can be stated in two ways: sum insured or probable maximum loss (PML).

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Q. How are the limits of surplus stated?
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