Question

Which type of covers typically have reinstatement provisions?

a.

Catastrophe excess of loss covers

b.

Proportional treaty covers

c.

Excess of loss treaty based on 'Burning Cost'

d.

both a and c

Posted under IC85 Reinsurance Management

Answer: (d).both a and c Explanation:Typically, reinstatement provisions are relevant for catastrophe excess of loss covers. However, this facility is extended to Risk XL cover on a free of cost basis for the first or the first two reinstatements with any subsequent reinstatement bearing a stiff additional premium. In the case of excess of loss treaty based on 'Burning Cost', the GNPI for the purpose of reinstatement would need to be agreed at the time of inception.

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Q. Which type of covers typically have reinstatement provisions?
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