Question

What is the deductible under an excess of loss reinsurance contract?

a.

The amount of loss being reinsured

b.

The total sum insured

c.

The premium paid by the reinsured

d.

The proportion of the original risk ceded by the ceding insurer

Answer: (a).The amount of loss being reinsured Explanation:The deductible is the specified monetary amount identified by the reinsured under an excess of loss reinsurance contract, and it represents the amount of loss being reinsured.

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Q. What is the deductible under an excess of loss reinsurance contract?

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