Question

What is Burning Cost?

a.

The cost at which claims would equal the excess of loss reinsurance premium

b.

The amount paid by the reinsurer for each claim made by the reinsured

c.

The percentage of the insurer's gross premium income

d.

The cost of paying all claims during the year

Posted under IC85 Reinsurance Management

Answer: (a).The cost at which claims would equal the excess of loss reinsurance premium Explanation:Burning Cost refers to the cost at which claims would equal the excess of loss reinsurance premium.

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