Question

What are the defects of the "risk attaching" basis?

a.

Long run-off and difficulty of assigning a claim to the proper excess of loss contract year.

b.

No portfolio taken over at inception, no portfolio withdrawn at cancellation, and no checking when a claim occurs to see when the policy was issued and what contract was affected.

c.

None of the above.

d.

Both a and b

Posted under IC85 Reinsurance Management

Answer: (a).Long run-off and difficulty of assigning a claim to the proper excess of loss contract year. Explanation:The defects of the "risk attaching" basis are the long run-off and the difficulty of assigning a claim to the proper excess of loss contract year.

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