Question

What happens to the cover in a non-proportional reinsurance after payment of loss?

a.

The cover increases

b.

The cover stays the same

c.

The cover depletes or ceases

d.

The reinsured receives a higher premium

Answer: (c).The cover depletes or ceases Explanation:In practice, a non-proportional reinsurance provides that the cover would deplete or cease upon payment of loss.

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Q. What happens to the cover in a non-proportional reinsurance after payment of loss?

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