Question

What modifications may be made to the schedule of retentions for cases where more than one risk can readily be affected by one event?

a.

Scaling down by a percentage the normal retention

b.

Fixing aggregate limits area-wise

c.

Both a and b

d.

None of the above

Posted under IC85 Reinsurance Management

Answer: (c).Both a and b Explanation:The modification may either be in the form of scaling down by a percentage the normal retention or by fixing aggregate limits area-wise.

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Q. What modifications may be made to the schedule of retentions for cases where more than one risk can readily be affected by one event?
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