Question

When dealing with large risks, what is customary in terms of fixing retentions?

a.

Use a standard schedule of retentions

b.

Evaluate the loss exposures

c.

Grade the retention amounts

d.

Inspect the risks individually

Posted under IC85 Reinsurance Management

Answer: (d).Inspect the risks individually Explanation:When dealing with large risks, it is customary to have the risks inspected and to fix retentions individually, rather than applying a standard schedule of retentions.

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Q. When dealing with large risks, what is customary in terms of fixing retentions?
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