Question

________________ are also known as Working Excess of Loss covers and are used to reduce the insurer’s loss in respect of a single risk.

a.

Ultimate net loss

b.

Per risk

c.

Catastrophe

d.

Burning cost

Posted under IC85 Reinsurance Management

Answer: (b).Per risk Explanation:Per risk excess of loss is a type of non-proportional reinsurance cover that protects an insurer against large losses on an individual risk. It is also known as working excess of loss covers. The reinsurer agrees to pay a percentage of the loss above a specified amount, which is called the retention or deductible. The purpose of this cover is to limit the insurer's loss on a single risk and to protect its solvency.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. ________________ are also known as Working Excess of Loss covers and are used to reduce the insurer’s loss in respect of a single risk.
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which of the following covers is installed to assist to cover any gap in the various reinsurance arrangements made by a reinsured?

View solution

Q. ________________ is a method that mitigates the impact of an unbearable net loss ratio.

View solution

Q. Which of the following covers is sought for protection against an aggregation of losses arising from a common event such as flood?

View solution

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

View solution

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
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!

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Waste Water Engineering

Navigate the challenges of wastewater treatment and management with our Waste Water...

Foundation Engineering

Master the principles of Foundation Engineering with our specialized category....

IC85 Reinsurance Management

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

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...