Question

What are the types of risk insured and the size of the sum insured that affect the rate for excess of loss covers?

a.

They affect the degree to which the reinsurer would be exposed to claims.

b.

They do not affect the rate for excess of loss covers.

c.

They affect the reinsurer's management expenses.

d.

They affect the underwriting limits of the reinsured.

Posted under IC85 Reinsurance Management

Answer: (a).They affect the degree to which the reinsurer would be exposed to claims. Explanation:The types of risk insured and the size of the sum insured affect the degree to which the reinsurer would be exposed to claims, and this affects the rate for excess of loss covers.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What are the types of risk insured and the size of the sum insured that affect the rate for excess of loss covers?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How does the lower retention of the reinsured affect the rate?

View solution

Q. How does the range of insurance business covered affect the rate?

View solution

Q. What is the importance of past experience to the reinsurer?

View solution

Q. What is Burning Cost?

View solution

Q. What is Burning Cost?What are Incurred But Not Reported (I.B.N.R.) claims?

View solution

Q. What is the basis used for all types of excess of loss treaties?

View solution

Q. What is the meaning of Rate on Line?

View solution

Q. Why are catastrophe covers unsuitable for the burning cost method of rating?

View solution

Q. What does the Rate on Line indicate?

View solution

Q. What is an Incurred But Not Reported (I.B.N.R.) claim?

View solution

Q. What are the main factors in rating a catastrophe cover?

View solution

Q. What is the burning cost method of rating?

View solution

Q. How is the rate of premium agreed upon in the burning cost method?

View solution

Q. What is the payback method used for?

View solution

Q. What is the Rate on Line used for?

View solution

Q. What are the main factors in rating a catastrophe cover?

View solution

Q. What is the payback method in catastrophe modeling?

View solution

Q. What is the basis for rating working excess of loss treaty?

View solution

Q. What is the formula for calculating pure burning cost?

View solution

Q. What are the main factors in rating a catastrophe cover?

View solution
View All MCQs on IC85 Reinsurance Management

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!

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

Corrosion Engineering

Master the art of preventing material deterioration with our Corrosion Engineering...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Human Anatomy and Physiology

Embark on a journey through the human body with our Human Anatomy and Physiology...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

IC 14 Regulations of Insurance Business

Prepare for the IC 14 Regulations of Insurance Business exam with our focused set of...

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...