Question

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

a.

The reinsurer's liability for the whole of the excessThe total loss incurred by the reinsured after recoveries from all other reinsurances and before the excess of loss reinsurer becomes interested

b.

The reinsured's liability for the whole of the excessThe total loss incurred by the reinsured after recoveries from all other reinsurances and after the excess of loss reinsurer becomes interested

c.

The reinsurer's liability for a percentage of the excessThe total loss incurred by the reinsured before recoveries from all other reinsurances and after the excess of loss reinsurer becomes interested

d.

The reinsured's liability for a percentage of the excessThe total loss incurred by the reinsured before recoveries from all other reinsurances and before the excess of loss reinsurer becomes interested

Posted under IC85 Reinsurance Management

Answer: The reinsurer's liability for a percentage of the excessThe total loss incurred by the reinsured after recoveries from all other reinsurances and before the excess of loss reinsurer becomes interested Explanation:Co-insurance can be built into the excess of loss cover, where the reinsurer may not wish to be liable for the whole of the excess but only for a percentage, e.g., 90%, and the reinsured retains the balance.Ultimate net loss is the loss that exceeds the net retained loss after recoveries from all other reinsurances and before the excess of loss reinsurer becomes interested.

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