Question

What is the purpose of Working (Risk) Excess of Loss (XL) reinsurance?

a.

To limit losses that arise on the reinsured’s day-to-day operations

b.

To provide protection against number of losses that arise out of a single accident, occurrence or event

c.

To protect a reinsured against an accumulation or aggregation of losses arising from an identified event

d.

To provide protection against adverse underwriting results of proportional treaties

Answer: (a).To limit losses that arise on the reinsured’s day-to-day operations Explanation:Working (Risk) Excess of Loss (XL) reinsurance is intended to limit losses that arise on the reinsured’s day-to-day operations. It caters to the reinsured’s need for protection against a number of losses that arise out of a single accident, occurrence or event.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of Working (Risk) Excess of Loss (XL) reinsurance?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of Risk Excess of Loss reinsurance?

Q. What is the purpose of Catastrophe Excess of Loss (Cat XL) reinsurance?

Q. What is the purpose of Surplus facultative & Facultative Excess of Loss reinsurance?

Q. What is surplus facultative reinsurance?

Q. What is catastrophe excess of loss reinsurance?

Q. What is the trigger for stop loss or excess of loss ratio reinsurance?

Q. What is the difference between Aggregate Excess of Loss and Excess of Loss Ratio reinsurance?

Q. What is a possible trigger for Aggregate Excess of Loss cover?

Q. What is Whole Account Excess of Loss cover?

Q. ABC insurer wants to protect his whole book of business. Hence he enters into an arrangement where a single composite cover is installed for protection of its whole business, incorporating all classes of business. This arrangement is known as __________________.

Q. In non-proportional treaty, how can the reinsured split and structure their total XL requirement?

Q. What is co-insurance in excess of loss cover?

Q. What is co-insurance in excess of loss cover?What is the definition of ultimate net loss in non-proportional reinsurance?

Q. What costs are included in the calculation of ultimate net loss in non-proportional reinsurance?

Q. Which of the following is an important consideration when setting the reinsured's retention for the excess of loss cover in non-proportional reinsurance?

Q. What is ultimate net loss in non-proportional reinsurance?

Q. What is one of the most difficult decisions the reinsured has to make in non-proportional reinsurance?

Q. What is Mindip in non-proportional reinsurance?

Q. What is ultimate net loss?

Q. What types of expenditure are included in the calculation of ultimate net loss?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!