Question

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

a.

Flat Premium

b.

Burning cost

c.

Flat Rate

d.

Catastrophe excess

Posted under IC85 Reinsurance Management

Answer: (c).Flat Rate Explanation:The reinsurer may quote a Flat Rate as a percentage which is applied to the gross premium income of the particular class of business. This basis is used for all types of excess of loss treaties – both “working” and “catastrophe”.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What is the payback method used for?

View solution

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

View solution

Q. What is the purpose of reinstatement provisions?

View solution

Q. What is the purpose of reinstatement provisions?What is the purpose of a reinstatement provision in non-proportional treaties?

View solution

Q. Which type of covers typically have reinstatement provisions?

View solution

Q. How is the additional premium for reinstatement calculated?

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!

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Mass Transfer

Delve into the science of Mass Transfer with our specialized category. Explore...

Foundation Engineering

Master the principles of Foundation Engineering with our specialized category....

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Corrosion Engineering

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

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Human Anatomy and Physiology

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

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...