Question

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

For agreed deductibles and selected limits of cover

Posted under IC85 Reinsurance Management

Answer: (d).For agreed deductibles and selected limits of cover Explanation:Surplus facultative & Facultative Excess of Loss reinsurance may be affected on an individual risk where a ‘one off’ type of large loss may be expected to occur or Facultative XL reinsurance may be arranged on a number of such risks. Both these types of reinsurances are for agreed deductibles and selected limits of cover.

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