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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

View solution

Q. What does non-proportional reinsurance protect?

View solution

Q. What is the purpose of Umbrella excess of loss cover?

View solution

Q. What does Whole Account Excess of Loss cover protect?

View solution

Q. What does Aggregate excess of loss cover protect against?

View solution

Q. Which method mitigates the impact of an unbearable net loss ratio?

View solution

Q. What does excess of loss - Catastrophe cover protect the reinsured against?

View solution

Q. Which of the following is correct with regards to catastrophe cover?

View solution

Q. What are the defects of the "risk attaching" basis?What is the purpose of the specimen slip?

View solution

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

View solution

Q. Under which basis do claims under policies issued or renewed during the contract period are covered no matter in which year they may occur?

View solution

Q. What is the "risk attaching" basis used for in excess of loss contracts?

View solution

Q. What is the "loss occurring" basis used for in excess of loss contracts?

View solution

Q. What are the two methods used for determining which claim falls within the scope of the excess of loss cover?

View solution

Q. What is the merit of the “losses occurring” basis?

View solution

Q. Under the “losses occurring” basis, is the reinsurer liable for losses occurring after the contract ends, although the original policy may remain in force?

View solution

Q. Is the present reinsurer relieved of liability if the original policy was issued before the inception date of the present contract, and while another excess of loss treaty was in force?

View solution

Q. Under the “losses occurring” basis, are losses occurring within the contract period covered, no matter when the original policy was issued?

View solution

Q. What are the method/s for determining which claims fall within the scope of the excess of loss cover?

View solution

Q. What is the time zone used for a catastrophe treaty?

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....

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Environment Management

Master the art of Environment Management with our specialized category. Explore...

IC85 Reinsurance Management

Gear up for success in the Insurance Institute of India (III) examination with IC85...

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Virology

Explore the captivating world of Virology with our specialized category. Dive into...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...