Question

What is ultimate net loss?

a.

The loss incurred by the reinsured after all recoveries from other reinsurances

b.

The loss incurred by the reinsured after all claims' costs are calculated

c.

The loss incurred by the reinsured after all employees' salaries are included

d.

The loss incurred by the reinsured before any recoveries are deducted

Posted under IC85 Reinsurance Management

Answer: (d).The loss incurred by the reinsured before any recoveries are deducted Explanation:Ultimate net loss is defined as the loss incurred by the reinsured before any recoveries from other reinsurances and before the excess of loss reinsurer becomes interested.

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