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.

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