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

Posted under IC85 Reinsurance Management

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.

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