Question

In case of Excess of Loss – Working (per risk), insurance protection is sought by the ceding reinsurer for ___________.

a.

Mitigating Risk

b.

Mitigating Excess of loss

c.

Mitigating Proportional premium

d.

Mitigating loss beyond its limit of retention

Posted under IC85 Reinsurance Management

Answer: (d).Mitigating loss beyond its limit of retention Explanation:In excess of loss - working (per risk), the ceding reinsurer seeks insurance protection to mitigate losses that exceed its limit of retention for each individual risk. This means that the reinsurer will only pay out for losses that exceed a certain threshold, which is set by the reinsurer's retention limit for each individual risk. The excess of loss cover is designed to protect the ceding reinsurer from large losses that it would otherwise be unable to absorb on its own.

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Q. In case of Excess of Loss – Working (per risk), insurance protection is sought by the ceding reinsurer for ___________.
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